Official ReserveOfficial Reserve

Offical Rare Coins (ORRCORRC) was formed on January 1,2018.

Additional data for the year follow:

i More Info a. On January 1, 2018, ORRC issued no par common stock for $400,000. b. Early in January, ORRC made the following cash payments: 1. For store fixtures, $49,000 2. For merchandise inventory, $240,000 3. For rent expense on a store building, $14,000 c. Later in the year, ORRC purchased merchandise inventory on account for $241,000. Before year-end, ORRC paid $151,000 of this accounts payable. d. During 2018, ORRC sold 2,300 units of merchandise inventory for $325 each. Before year-end, the company collected 95% of this amount. Cost of goods sold for the year was $350,000, and ending merchandise inventory totaled $131,000. e. The store employs three people. The combined annual payroll is $92,000, of which ORRC still owes $6,000 at year-end. f. At the end of the year, ORRC paid income tax of $15,000. There are no income taxes payable. g. Late in 2018, ORRC paid cash dividends of $40,000. h. For store fixtures, ORRC uses the straight-line depreciation method, over five years, with zero residual value. Print Print Done Done Official Reserve Rare Coins (ORRC) was formed on January 1, 2018. Additional data for the year follow: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the purpose of the statement of cash flows? The purpose of the statement of cash flows is Requirement 2. Prepare ORRC's income statement for the year ended December 31, 2018. 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, 2018 Revenue: Sales Revenue Expenses: Cost of Goods Sold Salaries and Wages Expense Depreciation Expense Rent Expense Income Tax Expense Total Expenses Net Income Requirement 3. Prepare ORRC's balance sheet at December 31, 2018. Official Reserve Rare Coins Balance Sheet December 31, 2018 Assets Liabilities Current Assets: Cash Current Liabilities: Accounts Payable Accounts Receivable Salaries Payable Merchandise Inventory Total Current Liabilities Total Current Assets Stockholders' Equity | Common Stock Property, Plant, and Equipment: Salaries Payable | Less: Accumulated Depreciation Retained Earnings Total Stockholders' Equity Total Assets Total Liabilities and Stockholders' Equity Requirement 4. Prepare ORRC's statement of cash flows using the indirect method for the year ended December 31, 2018. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero. Ento "O" 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, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Depreciation Expense Increase in Accounts Receivable Increase in Merchandise Inventory Increase in Accounts Payable Increase in Salaries Payable Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Receipt from Issuance of Common Stock Cash Payment of Dividends Net Cash Provided by (Used for) Investing Activities Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Receipt from Issuance of Common Stock Cash Payment of Dividends Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Cash Receipt from Issuance of Common Stock Cash Payment of Dividends Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Choose from any list or enter any number in the input fields and then continue to the next