i More Info Requirements a. On January 1, 2016, ARRC issued no par common stock for $475,000. b. Early in January, ARRC made the following cash payments: 1. For store fixtures, $56,000 2. For merchandise inventory. $260,000 3. For rent expense on a store building. $15,000 c. Later in the year, ARRC purchased merchandise inventory on account for $234,000. Before year-end, ARRC paid $134,000 of this account payable. d. During 2016, ARRC sold 3,000 units of merchandise inventory for $325 each. Before year-end, the company collected 80% of this amount. Cost of goods sold for the year was $250,000, and ending merchandise inventory totaled $244,000. e. The store employs three people. The combined annual payroll is $96,000, of which ARRC still owes $4,000 at year-end. f. At the end of the year, ARRC paid income tax of $22,000. There are no income taxes payable. g. Late in 2016, ARRC paid cash dividends of S44,000. h. For store fixtures. ARRC uses the straight-line depreciation method, over five years. with zero residual value. Requirement 2. Prepare ARRC's balance sheet at December 31, 2016 1. Prepare ARRC's income statement for the year ended December 31, 2016. Use the single-step format, with all revenues listed together and all expenses listed together 2. Prepare ARRC's balance sheet at December 31, 2016. 3. Prepare ARRC's statement of cash flows for the year ended December 31, 2016. Format cash flows from operating activities by the direct method. Requirement 1. Prepare ARRC's income statement for the year ended De Assets Current Assets Cash $ $ 975,000 100,000 4,000 Accounts Receivable American Reserve Rare Coins Balance Sheet December 31, 2016 Liabilities Current Liabilities $ 632,000 Accounts Payable 195,000 Salaries Payable 244,000 Total Current Liabilities 1,071,000 Stockholders' Equity Common Stock, no par 56,000 Retained Earnings (11 200) 44.800 Total Stockholders' Equity 104,000 Merchandise Inventory Total Current Assets American Reserve Rare Coins Income Statement Year Ended December 31, 2016 Revenue: Sales Revenue Expenses: Cost of Goods Sold 250,000 Salaries and Wages Expense 96,000 Depreciation Expense 11,200 Rent Expense 15,000 Income Tax Expense 22.000 Total Expenses Net Income Plant Assets: Store Fictures Less: Accumulated Depreciation $ 475,000 536,800 1,011,800 394 200 580.800 $ $ 1,115,800 Total Liabilities and Stockholders' Equity $ 1,115,800 Total Assets Complete the statement one section at a time, beginning with the cash flows from operating activities. American Reserve Rare Coins Statement of Cash Flows Year Ended December 31, 2016 Cash Flows from Operating Activities: Receipts: Increase in Accounts Receivable Total Cash Receipts Payments: Total Cash Payments Net Cash Provided by (Used for) Operating Activities