Question

Cassandra Corporation began operations on January 1, Year 1, as an online retailer of computer software and hardware. The following financial statement data were taken from Cassandra's records at the end of its first year of operations, December 31, Year 1.

Accounts payable ........... $ 20,000

Accounts receivable ..........110,000

Capital stock .............252,000

Cash .................?

Cash payments for operating activities .....657,000

Cash receipts from operating activities .....690,000

Cost of sales ..............435,000

Dividends ...............30,000

Income tax expense ...........53,000

Income taxes payable ...........8,000

Interest expense .............2,000

Inventories ...............115,000

Note payable (due in ten years) .......50,000

Property, plant, and equipment .......265,000

Retained earnings .............?

Sales .................800,000

Selling and administrative expenses ..... 80,000

Instructions

1. Prepare an income statement for the year ended December 31, Year 1.

2. Prepare a retained earnings statement for the year ended December 31, Year 1.

3. Prepare a balance sheet as of December 31, Year 1.

4. Prepare a statement of cash flows for the year ended December 31, Year 1.