Question content area top Part 1 National Reserve Rare Coins (NRRC) was formed on January 1, 2016. Additional data for the year follow: LOADING... (Click the icon to view the data.) Read the requirements. Question content area bottom Part 1 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. Part 2 Requirement 2. Prepare NRRC's income statement for the year ended December 31, 2016. Use the single-step format, with all revenues listed together and all expenses listed together. National Reserve Rare Coins Income Statement Year Ended December 31, 2016 Revenue: Sales Revenue $600,000 Expenses: Cost of Goods Sold $270,000 Salaries and Wages Expense 90,000 Income Tax Expense 21,000 Rent Expense 20,000 Depreciation Expense 9,800 Total Expenses 410,800 Net Income $189,200 Part 3 Requirement 3. Prepare NRRC's balance sheet at December 31, 2016.

Data table

a.	On January 1, 2016, NRRC issued no par common stock for $510,000.
b.	Early in January, NRRC made the following cash payments:
	1.	For store fixtures, $49,000
	2.	For merchandise inventory, $240,000
	3.	For rent expense on a store building, $20,000
c.	Later in the year, NRRC purchased merchandise inventory on account for $243,000. Before year-end, NRRC paid $153,000 of this account payable.
d.	During 2016, NRRC sold 3,000 units of merchandise inventory for $200 each. Before year-end, the company collected 95% of this amount. Cost of goods sold for the year was $270,000, and ending merchandise inventory totaled $213,000.
e.	The store employs three people. The combined annual payroll is $90,000, of which NRRC still owes $5,000 at year-end.
f.	At the end of the year, NRRC paid income tax of $21,000. There are no income taxes payable.
g.	Late in 2016, NRRC paid cash dividends of $34,000.
h.	For store fixtures, NRRC uses the straight-line depreciation method, over five years, with zero residual value.