Requirement 1. What is the purpose of the statement of cash flows? X More Info The purpose of the statement of cash flows is to show where cash came from and how cash was spent during the period. Requirement Prepare FRC's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together. Requirements $ 910,000 Frontier Rare Coins Income Statement Year Ended December 31, 2018 Revenue: Sales Revenue Expenses: Cost of Goods Sold $ 330,000 Salaries and Wages Expense 82,000 Depreciation Expense 9,800 Rent Expense 14,000 Income Tax Expense 20,000 Total Expenses a. On January 1, 2018, FRC issued no par common stock for $475,000 b. Early in January, FRC made the following cash payments: 1. For store fixtures, $49,000 2. For merchandise inventory, $300,000 3. For rent expense on a store building, $14,000 c. Later in the year, FRC purchased merchandise inventory on account for $237,000. Before year-end, FRC paid $147,000 of this accounts payable. d. During 2018, FRC sold 2,600 units of merchandise inventory for $350 each. Before year-end, the company collected 80% of this amount Cost of goods sold for the year was $330,000, and ending merchandise inventory totaled $207,000. e. The store employs three people. The combined annual payroll is $82,000, of which FRC still owes $2,000 at year-end. f. At the end of the year, FRC paid income tax of $20,000. There are no income taxes payable. g. Late in 2018, FRC paid cash dividends of $42,000. h. For store fixtures, FRC uses the straight-line depreciation method, over five years, with zero residual value. 1. 2. What is the purpose of the statement of cash flows? Prepare FRC's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together. Prepare FRC's balance sheet at December 31, 2018. Prepare FRC's statement of cash flows using the indirect method for the year ended December 31, 2018 3. 4. 455,800 454,200 $ Net Income Print Done Print Done Requirement 3. Prepare FRC's balance sheet at December 31, 2018. Assets Current Assets Cash Accounts Receivable Merchandise Inventory Total Current Assets Frontier Rare Coins Balance Sheet December 31, 2018 Liabilities Current Liabilities: Accounts Payable Salaries Payable Total Current Liabilities Stockholders' Equity Common Stock Property, Plant, and Equipment: Store Fixtures Retained Earnings Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check