Requirement

1.	Prepare Vintage Motors, Inc.'s, income statement for the year ended December 31,2016. Use the single-step format, with all revenues listed together and all expenses together.
2.	Prepare Vintage's balance sheet at December 31,2016.
3	Prepare Vintage's statement of cash flows for the year ended December 31, 2016. Format cash flows from operating activities by using the indirect method.

On January 1, 2016, Vintage issued its common stock for $280,000. Early in January, Vintage

made the following cash payments:

a.$120,000 for equipment

b.$136,000

for inventory (four cars at $34,000 each)

C. $23,000 For 2016 rent on a store building

In February, Vintage purchased nine cars for inventory on account. Cost of this inventory was

$414,000 ($46,000 each). Before year-end, Vintage paid $207,000 of this debt. The company uses the first-in, first-out (FIFO) method to account for inventory. During 2016, Vintage sold 7 autos for a total of

$490,000. Before year-end, it had collected 80% of this amount. The business employs four people. The combined annual payroll is $100,000, of which Vintage owes $3,000 at year-end. At the end of the year,

Vintage paid income tax of $15,000. Late in 2016, Vintage declared and paid cash dividends of $17,000. For equipment, Vintage uses the straight-line depreciation method, over five years, with zero residual value.

Requirement 1. Prepare

VintageVintage

Motors, Inc.'s, income statement for the year ended December 31,

20162016.

Use the single-step format, with all revenues listed together and all expenses together.

		Vintage Motors, Inc.
		Income Statement
		Year Ended December 31, 2016
	Revenue:
	Expenses:

Requirement 2. Prepare

VintageVintage's

balance sheet at December 31,

20162016.

Vintage Motors, Inc.
Balance Sheet
December 31, 2016
Assets					Liabilities
Current assets:					Current liabilities:
					Stockholders' equity
Property, plant, and equipment:
Less:

Requirement 3. Prepare

VintageVintage's

statement of cash flows for the year ended December 31,

20162016.

Format cash flows from operating activities by using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash. Enter "0" for zero balances.)

	Vintage Motors, Inc.
	Statement of Cash Flows (Indirect Method)
	Year Ended December 31, 2016
	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

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