Games, Inc. Financial Statements
	Available Information:
1	Equipment was sold in 2016. No new equipment was purchased.
2	Land was purchased in 2016. No land was sold.
3	The current year long-term note was paid down. No new long-term notes were borrowed.
4	Shares of stock were sold in 2016. The stock sale was recorded to Common stock and Additional paid-in capital.
5	Dividends were paid in 2016.
	Required:
1	Use the T-accounts to calculate the information necessary to complete the Statement of Cash Flows.
2	Complete the Statement of Cash Flows for Games, Inc. Check your formatting/dollar signs.
3	Calculate Earnings Per Share (EPS) for Games, Inc. on the face of the Income Statement.
4	Calculate the par value of Games, Inc. stock on the face of the Balance Sheet.

	Games, Inc.
	Income Statement
	For the Year Ended December 31, 2016
	Net sales	$1,520,000
	Cost of goods sold	725,000
	Gross profit	795,000
	Expenses:
	Wages expense	150,000
	Supplies expense	35,000
	Depreciation expense	30,000
	Other Operating expenses	95,000
	Total operating expense	310,000
	Income from operations	485,000
	Other income (expense):
	Gain on sale of equipment	5,000
	Interest expense	(12,000)
	Income before income taxes	478,000
	Income tax expense	63,000
	Net income	$415,000
	Earning per share (EPS):

Games, Inc.
Balance Sheet
At December 31,
	2016		2015
Assets
Current assets:
Cash	$98,160		$31,500
Accounts receivable	65,000		83,000
Inventory	130,000		128,000
Prepaid insurance	4,000		4,560
Total current assets	297,160		247,060
Long-term investments	120,000		120,000
Equipment	200,000		250,000
Accumulated depreciation	(120,000)		(100,000)
Land	500,000		175,000
Total assets	$997,160		$692,060
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$26,500		$72,000
Interest payable	3,400		3,000
Income tax payable	30,200		25,000
Total current liabilities	60,100		100,000
Long-term notes payable	155,000		225,000
Total liabilities	215,100		325,000
Common stock 100,000 and 85,0000 shares issued and outstanding, respectively	200,000		170,000
Additional paid-in capital	100,000		80,000
Retained earnings	482,060		117,060
Total stockholders' equity	782,060		367,060
Total liabilities and stockholders' equity	$997,160		$692,060
What is the par value of Games, Inc. stock?

Equipment

Accumulated Depreciation

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Historical cost of Equipment sold

(Less AD of Equipment sold)

Net book value of equipment sold

Gain (Loss) on sale

Proceeds (cash inflow) from sale

Land

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Notes Payable

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Common Stock

Additional Paid-in Capital

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Retained Earnings

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Games, Inc.
Statement of Cash Flows			Cash Flow Tips:
For the Year Ended December 31, 2016
			Gain or Loss on Sale Rule:
Cash flows from operating activities:			Add the Loss, Subtract the Gain.
Adjustments to reconcile net income to cash flow from operating activities:
Changes in assets and liabilities:
Net cash provided by operating activities			Changes in current assets and current liabilities Excel tip:
			Current assets:
Cash flows from investing activities:			Prior year minus Current year
			Current liabilities:
			Current year minus Prior year
Net cash used from investing
Cash flows from financing activities:
Net cash used in financing activities
Net increase in cash and cash equivalents		sum of operating, investing, financing totals
Cash at the beginning of the period		prior year ending cash balance on the balance sheet
Cash at the end of the period		should tie to current year ending cash balance on the balance sheet