P16-32A Identifying the purpose and preparing the statement of cash flows- indirect method American Rare Coins (ARC) was formed on January 1, 2018. Additional data for the year follows: a. On January 1, 2018, ARC issued no par common stock for $450,000. b. Early in January, ARC made the following cash payments: 1. For store fixtures, S53,000 2. For merchandise inventors, $340,000 3. For rent expense on a store building. $20,000 c. Later in the year, ARC purchased merchandise inventory on account for $239,000. Before year-end, ARC paid $139,000 of this accounts payable, d. During 2018, ARC sold 2,400 units of merchandise inventory for $275 cach. Before year-end, the company collected 85% of this amount. Cost of goods sold for the year was $250 000, and ending merchandise inventory totaled $329,000. e. The store employs three people. The combined annual payroll is $96,000, of which ARC soll owes $3,000 ar year-end, f. At the end of the year. ARC paid income tax of $17.000. There are no income taxes pavable. g. Late in 2018, ARC paid cash dividends of $44000): h. For store fixtures, ARC uses the straight-line depreciation method, over five years, g. Late in 2018, ARC paid cash dividends of $44.000. b. For store fixtures, ARC uses the straight-line depreciation method, over five years, with nero residual value. Requirements 1. What is the purpose of the statement of cash flows 2. Prepare ARC's income statement for the year ended December 31, 2018. Use the single step formar, with all revenues listed together and all expenses listed together. 3. Prepare ARG's balance sheet at December 31, 2018, 4. Prepare Aros statement of cash flows using the indirect method for the year ended eembors2018