Milea Inc. experienced the following events in Year 1, its first year of operations: 1. Received $15,500 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,350. 4. Collected $33,120 of the accounts receivable. 5. Recorded $7,400 of accrued salaries at the end of the year. 6. Paid a $1,150 cash dividend to the stockholders. MILEA INC. Income Statement For the Year Ended December 31, Year 1 Revenue Expenses Utilities expense Salaries expense Total expenses Net income $ 1,350 7,400 $ 45,000 8,750 $ 36,250 MILEA INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock $ 0 Plus: Common stock issued 15,500 Ending common stock $ 15,500 Beginning retained earnings $ 0 Plus: Net income 32,920 Less: Dividend 1,150 Ending retained earnings 31,770 Total stockholders' equity $ 47,270 Assets Total assets Liabilities MILEA INC. Balance Sheet As of December 31, Year 1 Total liabilities Stockholders' Equity $ 0 $ 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 MILEA INC. Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities Cash received from customers Cash paid for expenses $ 33,120 1,350 Net cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Issue of stock $ 15,500 Paid dividend (1,150) Net cash flow from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance $ 34,470 0 14,350 48,820 0 $ 48,820