Problem 2-42A Missing information in financial statements LO 2-8 Required Enter the missing values in the following financial statements. Assume the company started operations January 1, Year 1, and all transactions involve cash. Year 3 700$ $ 2,000 (1,300) 700 $ $ 6.000 For the Years Year 1 Year 2 Income Statements Revenue $ 1,300 Expense (700) Net income $ 200 Statement of Changes in Stockholders' Equity Beginning common stock $ 0 Plus: Common stock issued 5,000 1.000 Ending common stock 5,000 6.000 Beginning retained earnings 0 100 Plus: Net income Less: Dividends Ending retained earnings 100 Total stockholders' equity $ Balance Sheets 2,000 200 700 (500) (300) 600 8,600 6,200 $ Assets Cash 0 Land Total assets $ 11.200 $ 8,000 10,600 2,000 5.000 $ 8,000 200 600 Liabilities $ Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 8,100 $ Statements of Cash Flows Cash flows from operating activities: 6.200 11,200 8,600 10,600 $ (500) Less: Dividends Ending retained earnings Total stockholders' equity 100 (300) 600 8,600 $ 6,200 $ Balance Sheets Assets Cash 11,200 $ 5,000 $ 8,000 10,600 2,000 8,000 600 200 6,200 11,200 $ 8,600 10,600 Land 0 Total assets $ Liabilities $ Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 8,100 $ Statements of Cash Flows Cash flows from operating activities: Cash receipts from customers $ Cash payments for expenses Net cash flows from operating activities 200 Cash flows from investing activities: Cash payments for land 0 Cash flows from financing activities: Cash receipts from loan 3,000 Cash payments to reduce debt 0 Cash receipts from stock issue 5,000 Cash payments for dividends (100) Net cash flows from financing activities 7,900 Net change in cash 8,100 0 Plus: Beginning cash balance Ending cash balance $ 8,100 $ 1,300 (700) 600 700 (8,000) 0 0 3,000 (1,000) 1,000 (500) 2,500 (4,900) 8,100 3,200 $ (1,300) (600) 3,200 2,600