Question

Financial Statements, including Statement of Cash Flows Pendray Systems Corporation began operations on January 1, 2015, as an online retailer of computer software and hardware. The following financial statement data were taken from Pendray's records at the end of its first year of operations, December 31, 2045. Accounts payable $60,000 Accounts receivable 330,000 Common stock 756,000 Cash Cash payments for operating activities 1,971,000 2,070,000 Cash receipts from operating activities Cost of sales 1,305,000 Dividends 90,000 Income tax expense 159,000 24,000 Income taxes payable Interest expense 6,000 Inventories 345,000 Note payable (due in ten years) 150,000 Property, plant, and equipment 795,000 Retained earnings Sales 2,400,000 Selling and administrative expenses 240,000 2. Prepare a statement of stockholders' equity for the year ended December 31, 2045. If your answer is zero enter "O". Pendray Systems Corporation Statement of Stockholders' Equity For the Year Ended December 31, 2045 Common stock Retained Earnings Balances, January 1, 2045 $ 756,000 X $ 0 ✓ Issuance of common stock 0 x Total $ 756,000 0 X Net income 690,000 690,000 Dividends 90,000 90,000 Balances, December 31, 2015 $ 756,000 ✓ $ 780,000 $ 1,536,000 Common stock Stockholders' Equity. $ 756,000 Retained earnings 780,000 Total stockholders' equity 1,536,000 Total liabilities and stockholders' equity $ 1,770,000 3. Prepare a balance sheet as of December 31, 2045. Pendray Systems Corporation Balance Sheet December 31, 2045 Assets $ 300,000 Cash ✓ Accounts receivable 330,000 Inventories 345,000 Property, plant, and equipment 795,000 Total assets $ 1,770,000 Liabilities Accounts payable 60,000 Income taxes payable 24,000 Note payable (due in 10 years) 150,000 Total liabilities $ 234,000 4. Prepare a statement of cash flows for the year ended December 31, 2045. Use the minus sign to indicate cash out flows, decreases in cash, or cash payments. If your answer is zero enter "O". Pendray Systems Corporation Statement of Cash Flows For the Year Ended December 31, 2045 Cash flows from operating activities: Cash receipts from operating activities $ 2,070,000 Cash payments for operating activities 1,971,000 Net cash flows from operating activities $ 99,000 Cash flows from investing activities: Investments in property, plant, and equipment 795,000 Cash flows from financing activities: Cash receipt from issuance of note payable 150,000 Cash receipt from issuance of common stock 756,000 Cash payments for dividends 90,000 Net cash flows from financing activities 996,000 Net increase in cash during 2045 $ 1,890,000 Cash as of January 1, 2045 780,000 Cash as of December 31, 2015 $ 2,670,000 X

Answer 1

1. Prepare an income statement for the year ended December 31, 20Y5.

Pendray Systems Corporation
Income Statement
For the Year Ended December 31, 20Y5
Revenue:
Sales		$2,400,000
Expenses:
Cost of sales	$1,305,000
Selling and administrative expenses	$240,000
Income tax expense	$159,000
Interest expense	$6,000	$1,710,000
Net profit		$690,000

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2.

Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5. If your answer is zero enter "0".

Pendray Systems Corporation
Statement of Stockholders’ Equity
For the Year Ended December 31, 20Y5
	Common Stock	Retained Earnings	Total
Balances, January 1, 20Y5	$0	$0	$0
Issued shares for cash	$756,000		$756,000
Net income		$690,000	$690,000
Cash Dividends		($90,000)	($90,000)
Balances, December 31, 20Y5	$756,000	$600,000	$1,356,000

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3.

Prepare a balance sheet as of December 31, 20Y5.

Pendray Systems Corporation
Balance Sheet
December 31, 20Y5
Assets
Accounts receivable		$330,000
Cash (b/f)		$120,000
Inventories		$345,000
Property, Plant, and Equipment		$795,000
Total assets		$1,590,000
Liabilities
Accounts payable	$60,000
Income taxes payable	$24,000
Note payable	$150,000
Total liabilities		$234,000
Stockholders' Equity
Common stock	$756,000
Retained Earnings	$600,000
Total stockholders' equity		$1,356,000
Total liabilities and stockholders' equity		$1,590,000

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4.

Prepare a statement of cash flows for the year ended December 31, 20Y5

Pendray Systems Corporation
Statement of Cash Flows
For the Year Ended December 31, 20Y5
Cash flows from operating activities:
Cash receipts from operating activities	$2,070,000
Cash payment from operating activities	($1,971,000)
		$99,000
Cash flows from investing activities:
Property, plant, and Equipment		($795,000)
Cash flows from financing activities:
Common stock	$756,000
Dividends	($90,000)
Note payable	$150,000
		$816,000
Net increase/Decrease in cash and cash equivalent		$120,000
Cash and cash equivalent, beginning		$0
Cash and cash equivalent, Ending		$120,000

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