Required information [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $33,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,500 cash. 3. Earned $23,800 in cash revenue. 4. Paid $13,800 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,200. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. (Amounts to be deducted should be indicated by a minus sign.) X Answer is complete but not entirely correct. GULF SEAFOOD Balance Sheet As of December 31, Year 1 Assets Cash $ 33,000 Equipment - Cooktop Less: Accumulated depreciation $ 15,500 (2,460) 13,040 46,040 Total Assets Liabilities $ 0 Stockholders' equity Common stock $ 33,000 13,200 x Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 46,200 $ 46,200 For the Year Ended December 31, Year 1 $ 23,800 Cash flows from operating activities: Cash receipts from revenue Cash outflow for cooktop Cash payment for salaries Net cash flow from operating activities Cash flows from investing activities: (13,800) $ 10,000 Cash outflow for cooktop (15,500) (15,500) Net cash flow from investing activities Cash flows from financing activities: Cash receipts from issue of stock $ 33,000 33,000 27,500 Net cash flow from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 $ 27,500