Official Reserve Rare Coins (ORRC) was formed on January 1,2016. Additional data for the year follow:

a. On Jan 1 2016 ORRC issued no par common stock for $450,000

b. Early in Jan, ORRC made the following cash payments: 1) For store fixtures $49,000 2) For merchandise inventory $280,000 3) For rent expense on a store building, $10,000

c. Later in the year, ORRC purchased merchandise inventory on account for $238,000. Before year end, ORRC paid $158,000 of this account payble.

d During 2016 ORRC sold 2,900 units of merchandise inventory for $200 each. Before year end the company collected 80% of this amount. Cost of goods sold for the year was $340,000, and ending merchandise inventory totaled $178,000

e. The store employs three people. The combinded annual payroll is $88,000 of which ORRC still owes $5,000 at year end/

f. At the end of the year, ORRC paid income tax of $17,000. There are no income taxes payable.

g. Late in the 2016, ORRC paid cash dividends of $38,000

h. For fixtures, ORRC uses the straight-line depreciation method, over five years with zero residual value.

Requirement 1. Prepare ORRC's income statement for the year ended December 31, 2016

Use the single-step format, with all revenues listed together and all expenses listed together.

Official Reserve Rare Coins
Income Statement
Year Ended December 31, 2016
	Revenue:
	Expenses:
		Total Expenses
	Net Income

Requirement 2. Prepare ORRC's balance sheet at December 31, 2016.

	Official Reserve Rare Coins
	Balance Sheet
	December 31, 2016
	Assets				Liabilities
	Current Assets:				Current Liabilities:
					Total Current Liabilities
	Total Current Assets
					Stockholders' Equity
	Plant Assets:
					Total Stockholders' Equity
	Total Assets				Total Liabilities and Stockholders' Equity

Requirement 3. Prepare ORRC's statement of cash flows for the year ended December 31, 2016.

Format cash flows from operating activities by the direct method. (Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero. Enter "0" for a zero cash balance.)

Complete the statement one section at a time, beginning with the cash flows from operating activities.

	Official Reserve Rare Coins
	Statement of Cash Flows
	Year Ended December 31, 2016
	Cash Flows from Operating Activities:
	Receipts:
	Total Cash Receipts
	Payments:
	Total Cash Payments
	Net Cash Provided by (Used for) Operating Activities

	Cash Flows from Investing Activities:
	Net Cash Provided by (Used for) Investing Activities

	Cash Flows from Financing Activities:
	Net Cash Provided by (Used for) Financing Activities

	Net Increase (Decrease) in Cash
	Cash Balance, December 31, 2015
	Cash Balance, December 31, 2016