Year 1 Transaction List: 1. Acquired $550,000 by signing a note payable with a local bank on Jan 1. 2. Sold 25,000 shares of S22 par value Common Stock for $1,500,000 3. Purchased Equipment for $300,000 cash 4. Purchased 25,000 units of Inventory on Account at $1.15 per unit 5. Sold 15,000 units at $3.50 on Account 6 Collected $70,000 of accounts receivable 7. Paid $17,250 of Accounts Payable 18. Purchased 170,000 units of Inventory on Account at $1.50 per unit 9. Sold 175,000 units at $3.50 on Account 10. Collected $472,500 of accounts receivable 11. Paid $118,600 of Accounts Payable Survey of Accounting Comprehensive Assignment -- Financial Statements & Flexible Budget 12. Purchased 275,000 units of Inventory on Account at $1.35 per unit 13. Sold 200,000 units at $3.50 on Account 14. Collected $735,000 of accounts receivable 15. Paid $294,150 of Accounts Payable 16. Purchased 300,000 Units of inventory on Account at $1.15 per unit 17. Record Sales & Marketing Expenses of $30,000 (paid in cash) 18. Record Operating Expenses of $75,708 (paid in cash) 19. Record Wage Expenses of $40,000 (paid in cash) 20. Record Product Line Research & Development Expenses of $150,000 (paid in cash) 21. Record Advertising Expenses of $87,500 (paid in cash) 22. Made the yearly required payment on the note payable. The note carries a 7% interest rate and requires payments of $50,000 plus interest each December 31. 23. Record Year 1 Depreciation on Equipment with Salvage Value of $38,000 and useful life of 7 Years (straight-line depreciation) 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Statement of Cash Flows Year 1 Cash flows from operating activities Cash receipts from revenue Cash payments for expenses Net cash flow from operating activities $ Cash flows from investing activities: Cash payments to purchase equipment $ Cash flows from financing activities: Cash receipts from borrowing funds Cash receipts from issuing common stock Cash payments to repay borrowed funds Cash payments for dividends Net cash flow from financing activities $ $ Net increase/(decrease) in cash Plus: beginning cash balance Ending cash balance $ $