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Milea Inc. experienced the following events in 2018, its first year of operations:

1. Received $15,500 cash from the issue of common stock.
2. Performed services on account for $45,000.
3. Paid the utility expense of $1,300.
4. Collected $31,530 of the accounts receivable.
5. Recorded $8,700 of accrued salaries at the end of the year.
6. Paid a $1,250 cash dividend to the stockholders.

Prepare the income statement. MILEA INC. Income Statement For the Year Ended December 31, 2018 Expenses Total expenses

Answer 1

1. Please find the Profit & Loss statement as below:

$ 45,000 MILEA INC. Income Statement For the Year Ended December 31, 2018 Revenue: Sale of Services Expenses Utility Expenses $ 1,300 Accrued Salaries $ 8,700 Total Expenses $ (10,000) Net Profit/(Loss) for the year $ 35,000

2. Please find the Statement of Changes in Stockholder's Equity as below:

MILEA INC. Statement of Changes in Stockholder's Equity For the Year Ended December 31, 2018 Beginning Common Stock $ 15,500 Changes in the year $ - Ending Common Stock $ 15,500 Beginning Retained Earnings Profits of the year Dividend Paid Ending Retained Earnings $ $ 35,000 (1,250) $ 33,750 Net Profit/(Loss) for the year $ 49,250

3. Please find the Balance Sheet as below:

MILEA INC. Balance Sheet For the Year Ended December 31, 2018 Assets Accounts Receivable $ 13,470 Cash $ 44,480 Total Assets $ 57,950 Liabilities Accrued Salaries Total Liabilities $ 8,700 $ 8,700 Stockholder's Equity Common Stock Retained Earning Total Stockholder's Equity $ $ 15,500 33,750 $ 49,250 Total liabilities and stockholder's equity $ 57,950

4. Please find the Cash Flow Statement as below:

M MILEA INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash Flow from Operating Activities Net Profit from P&L $ 35,000 Less: Dividend Paid $ (1,250) Changes in Working Capital: Increse in Account Receivable $ (13,470) Increse in Accrued Salaries $ 8,700 Net Cash flow from Operating Activities $ 28,980 Cash flow from Investing Activity Cash flow from Financing Activity issue of Share $ 15,500 Net Cash flow from Operating Activities $ 15,500 $ 44,480 Net Change in Cash Opening Cash Ending Cash Balance $ $ 44,480