Requirement 3. Prepare NRRC's balance sheet at December 31, 2018. National Reserve Rare Coins Balance Sheet December 31, 2018 Assets Liabilities Current Assets: Current Liabilities: Cash Accounts Payable Accounts Receivable Salaries Payable Merchandise Inventory Total Current Liabilities Total Current Assets Stockholders' Equity Property, Plant, and Equipment: Common Stock Store Fixtures Retained Earnings Less: Accumulated Depreciation Total Stockholders' Equity Total Assets Total Liabilities and Stockholders' Equity National Reserve Rare Colns (NRRC) was formed on January 1, 2018. Additional data for the year follow: (Click the icon to view the data.) Read the requirements Requirement 1. What is the purpose of the statement of cash flows? 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 2. Prepare NRRC's income statement for the year ended December 31, 2018. Use the single-step format, with a National Reserve Rare Coins Income Statement Year Ended December 31, 2018 Revenue: Sales Revenue S 575,000 Expenses: Cost of Goods Sold Salaries and Wages Expense Depreciation Expense Rent Expense S 260.000 84.000 a. On January 1, 2018, NRRC issued no par common stock for $500,000 b. Early in January, NRRC made the following cash payments: 1. For store fixtures, $56,000 2. For merchandise inventory, $310,000 3. For rent expense on a store building, S17,000 C. Later in the year, NRRC purchased merchandise inventory on account for $242,000. Before year-end, NRRC paid $142.000 of this accounts payable. d. During 2018, NRRC sold 2,300 units of merchandise inventory for $250 each. Before year-end, the company collected 95% of this amount. Cast of goods sold for the year was $260,000, and ending merchandise inventory totaled $292,000. e. The store employs three people. The combined annual payroll is $84,000, of which NRRC still awes $5,000 at year-end. f. At the end of the year, NRRC paid income tax of $16,000. There are no income taxes payable. g. Late in 2018, NRRC paid cash dividends of $34,000. h. For store fixtures, NRRC uses the straight-line depreciation method, over five years, with zero residual valuo. 11,200 17.000 16.000 Income Tax Expense Total Expenses 388,200 S 186,800 Net Income Print Done Choose from any list or enter any number in the input fields and then click Check