Question

Astro Corporation was started with the issue of 5,400 shares of $8 par stock for cash on January 1, 2018. The stock was issued at a market price of $16 per share. During 2018, the company earned $69,300 in cash revenues and paid $46,431 for cash expenses. Also, a $4,600 cash dividend was paid to the stockholders. Required: Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Astro Corporation's 2018 fiscal year. Complete this question by entering your answers in the tabs below. Income Smt chgs in Shlds Eqy Smt of Cash Fls Balance Sheet Statement Prepare a statement of changes in stockholders. ASTRO CORPORATION Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2018 Beginning common stock Plus: Issuance of common stock $ 0 Ending common stock Beginning retained earnings Plus: Net income 22,869 Prev 3 of 5 Next 14

Answer 1

The question has required to prepare various parts of financial statements. Income statement is the statement of income and expenses made during the year. Statement of changes in equity reflects the changes made in the equity component including retained earnings in the year. The Balance sheet contains the assets and liabilities. The last one cash flow statements depicts what cash transactions were made and deduces the cash available on hand in the end of financial year.

                Income Statement

                For the Year ended December 31, 2018

Sales Revenue	$        69,300
Less: Expenses	$        46,431
Net income	$        22,869

                Statement of Changes in Equity

                For the Year ended December 31, 2018

Beginning Common Stock (5400 *8)	$                  43,200
Paid in Capital in Excess of Par 5400 * (16-8)	$                  43,200
Ending common Stock		$                  86,400
Beginning Retained Earnings	$             -
Add: Net Income	$                  22,869
Less: Dividends	$                    4,600
Ending Retained Earnings		$                  18,269
Total Stockholder's Equity		$                104,669

                Statement of cash flows

                For the Year ended December 31, 2018

Cash Flows from Operating Activities:
Cash received from revenues	$                    69,300
Cash paid for expenses	$                    46,431
Net Cash Flows from Operating activities		$                    22,869
Cash Flows from Investing Activities:
Net Cash Flow from Investing Activities		$                              -
Cash Flows from Financing Activities
Common Stock issued at $18	$                    86,400
Dividend paid	$                      4,600
Net Cash Flow from Financing Activities		$                    81,800
Net Change in Cash		$                  104,669
Beginning Cash Balance		$                              -
Ending Cash Balance		$                  104,669

                Balance Sheet

                For the Year ended December 31, 2018

Assets
Cash	$                  104,669
Total Assets		$        104,669
Liabilities		$          -
Stockholders' equity
Common Stock (at Par)	$                    43,200
Paid In Capital in Excess of Par	$                    43,200
Total Paid In Capital		$          86,400
Retained earnings		$          18,269
Total Liabilities & Stockholders’’ equity		$        104,669

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