Requirement 1. What is the purpose of the statement of cash flows? The purpose of the statersent of cash flows is to show where cash came from and how cash was spent during the period Requirement 2. Prepare ORRC's income statement for the year anded Docember 31, 2024. Use More info a. On January 1. 2024. ORRC tssued no pat coennion stock for $550,000 b. Eatly in January, ORRC nede the following cash payments 1. For store fotures, $51,000 2. For merchandise inventory, 5256.000 3. For reet expense on a store bulding. $16.000 c. Later hn he year. ORRC purchased myechandise invenfory on account fot \$243.000 Belore yeacend oRPC paid \$163.000 of ove accounts payable d. During 2024, ORRC sold 3.000 unis of merchandise inventory for 5300 each Before year-end, fie conpany collected 80% of the anount Cost of goods sod for the year was $260.000 and ending marchandse inventary botaked $233. 006 e. The store erpoloys these people. The combined anhual payco is 580,000/ gr which OPRC st otes $5.000 at yeacend taxes payatiol 9. Late in 2024 OrRe paid cash divetends of 136000 h. Fer itsee sotures, orerc ises the strabht Ine depreciaton method, over five yeari. winctere residual value