******PLEASE SHOW ALL YOUR WORK AND EQUATIONS USED!
Stylistic Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018: (Click the icon to view the transactions.) Read the requirements Requirement 1. Prepare Stylistic's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Stylistic Motors, Inc. - X More Info Income Statement Year Ended December 31, 2018 Revenue: on January 1, 2018, Stylistic issued its common stock for $S10,000. Early in January, Stylistic made the following cash payments Sales revenue 649000 a $220,000 for equipment Expenses b. $243,000 for inventory (nine cars at $27,000 each) c. $25,000 for 2018 rent on a store building Cost of goods sold 282000 In February, Stylistic purchased three cars for inventory on account. The cost of this Salary expense 151000 inventory was $117.000 ($39,000 per car). Before year-end, the company paid off $81,900 of this debt. The company uses the first-in, first-out (FIFO) method to account Rent expense 25000 for its inventory Depreciation expense 44000 During 2018, Stylistic sold eleven autos for a total of $649,000. Before year-end, it had collected 50% of this amount Income tax expense 22000 The business employs two people. The combined annual payroll is $151.000, of which Stylistic owes $11,000 at year-end. At the end of the year, the company paid Net Income loss) 125000 income taxes of $22,000. Late in 2018. Stylistic declared and paid cash dividends of $14,000. Requirement 2. Prepare Stylistic's balance sheet at December 31, 2018 For equipment Stylistic uses the straight-line depreciation method, over five years, with zero residual value. Stylistic Motors, Inc. Balance Sheet December 31, 2018 Print Done Assets Liabilities Current assets: Current liabilities: Cash Accounts receivable Inventory Stockholders' equity Property, plant, and equipment: Less: Requirement 3. Prepare Stylistic's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash. Enter "O" for zero balances.) Stylistic Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: 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 Depreciation Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in salary payable Issuance of common stock Net income Payment of dividend Purchase of equipment
