Financial Statements, including Statement of Cash Flows

Pendray Systems Corporation began operations on January 1, 20Y5, as an online retailer of computer software and hardware. The following financial statement data were taken from Pendrays records at the end of its first year of operations, December 31, 20Y5.

Accounts payable	$50,000
Accounts receivable	275,000
Common stock	630,000
Cash	?
Cash payments for operating activities	1,642,500
Cash receipts from operating activities	1,725,000
Cost of sales	1,087,500
Dividends	75,000
Income tax expense	132,500
Income taxes payable	20,000
Interest expense	5,000
Inventories	287,500
Note payable (due in ten years)	125,000
Property, plant, and equipment	662,500
Retained earnings	?
Sales	2,000,000
Selling and administrative expenses	200,000

Instructions:

1. Prepare an income statement for the year ended December 31, 20Y5.

Pendray Systems Corporation
Income Statement
For the Year Ended December 31, 20Y5
Revenue:
		$
Expenses:
	$
		$

2. Prepare a statement of stockholders equity for the year ended December 31, 20Y5. If your answer is zero enter "0".

Pendray Systems Corporation
Statement of Stockholders Equity
For the Year Ended December 31, 20Y5
	Common stock	Retained Earnings	Total
Balances, January 1, 20Y5	$	$	$
Balances, December 31, 20Y5	$	$	$

3. Prepare a balance sheet as of December 31, 20Y5.

Pendray Systems Corporation
Balance Sheet
December 31, 20Y5
Assets
		$
Total assets		$
Liabilities
	$
Total liabilities		$
Stockholders' Equity
	$
Total stockholders' equity
Total liabilities and stockholders' equity		$

4. Prepare a statement of cash flows for the year ended December 31, 20Y5. Use the minus sign to indicate cash out flows, decreases in cash, or cash payments. If your answer is zero enter "0".

Pendray Systems Corporation
Statement of Cash Flows
For the Year Ended December 31, 20Y5
Cash flows from operating activities:
	$
		$
Cash flows from investing activities:
Cash flows from financing activities:
	$
		$
		$