SEE ATTACHED SPREADSHEET TO ANSWER QUESTION

Required:

• Create a cash flow statement for Contest Company, for the year ended December 31, 2015, on thespreadsheet provided.
• Comment on the company's financial performance with respect to major items affecting cash.

Additional Information:

• From the Income Statement, there is a net income of $51 000 in 2015.
• Equipment was amortized for $9 000 in 2015.
• New equipment costing $21 000 was purchased.
• An old, fully amortized piece of equipment that cost $3 000 was discarded; its cost and accumulated amortization were removed from the accounts.
• 1 500 shares of stock were sold and issued at $12 per share.
• The company declared $30 000 of cash dividends during the year and paid $21 000 of dividends.

U7A7 Assignment 1 Contest Company Comparative Balance Sheet December 31, 2014 and 2015 Assets Cash Accounts Receivable Merchandise Inventory Equipment Accumulated Amortization Total Liabilities and Equity Accounts Payable Taxes Payable Dividends Payable Common Stock Retained Earnings Total 2015 $63,000 48,000 126,000 108,000 (24,000) $321,000 2014 $24,000 54,000 108,000 90,000 (18,000) $258,000 $42,000 6,000 9,000 198,000 66,000 $321,000 $30,000 12,000 180,000 36,000 $258,000 Additional Information: From the Income Statement, there is a net income of $51,000 in 2015. Equipment was amortized for $9,000 in 2015. Equipment costing $21,000 was purchased. Fully amortized equipment that cost $3,000 was discarded; its cost and accumulated amortization were removed from the 1 500 shares of stock were sold and issued at $12 per share. The company declared $30 000 of cash dividends during the year and paid $21 000 of dividends. ation were removed from the accounts. Contest Company Statement of Cash Flows For the year ended December 31, 2015 Operating Activities Net Income Add: Less: Net Cash from Operations Financing Activities Investing Activities