The following events apply to Gulf Seafood for the Year 1 fiscal year:

1. The company started when it acquired $38,000 cash by issuing common stock.

2. Purchased a new cooktop that cost $12,100 cash.

3. Earned $22,400 in cash revenue.

4. Paid $13,100 cash for salaries expense.

5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,400. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.

b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period.

Prepare a balance sheet for the Year 1 accounting period. (Enter amounts to be deducted with a minus sign.) Prepare a statement of cash flows for the Year 1 accounting period. (Enter cash outflows with a minus sign.) GULF SEAFOOD Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash Ending cash balance $0