Please answer all requirements!
American Rare Coins (ARC) 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 to show where cash came from and how cash was spent during the period. Requirement 2. Prepare ARC'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. American Rare Coins More Info Income Statement Year Ended December 31, 2018 Requirements Revenue: a. On January 1, 2018, ARC issued no par Sales Revenue $ 660,000 common stock for $450,000. 1. What is the purpose of the statement Expenses: b. Early in January, ARC made the of cash flows? Cost of Goods Sold $ 250,000 following cash payments: 2. Prepare ARC's income statement for Salaries and Wages Expense 96,000 1. For store fixtures, S53,000 the year ended December 31, 2018. Income Tax Expense 17,000 2. For merchandise inventory, $340,000 Use the single-step format, with all Depreciation Expense 3. For rent expense on a store building, 10,600 revenues listed together and all $20,000 Rent Expense 20,000 expenses listed together. c. Later in the year, ARC purchased Total Expenses 393,600 3. Prepare ARC's balance sheet at merchandise inventory on account for December 31, 2018. Net Income $ 266,400 $239,000. Before year-end, ARC paid 4. Prepare ARC's statement of cash $139,000 of this accounts payable. Requirement 3. Prepare ARC's balance sheet at December 31, 2018. flows using the indirect method for d. During 2018, ARC sold 2,400 units of American Rare Coins the year ended December 31, 2018, merchandise inventory for $275 each. Balance Sheet Before year-end, the company collected December 31, 2018 Print Done 85% of this amount. Cost of goods sold Assets Liabilities for the year was $250,000, and ending Current Assets: Current Liabilities: merchandise inventory totaled $329,000. e. The store employs three people. The combined annual payroll is $96,000, of Total Current Liabilities which ARC still owes $3,000 at Total Current Assets year-end. Stockholders' Equity f. At the end of the year, ARC paid income Property, Plant, and Equipment: tax of $17,000. There are no income taxes payable. Total Stockholders' Equity g. Late in 2018, ARC paid cash dividends of $44,000. h. For store fixtures, ARC uses the Total Assets Total Liabilities and Stockholders' Equity L straight-line depreciation method, over five years, with zero residual value. Print Done
