As of January Year Room Designs, Incorporated had a balance of $ in Cash, $ in Common Stock, and $ in
Retained Earnings. These were the only accounts with balances in the ledger on January Year Further analysis of the company's
cash account indicated that during the Year accounting period, the company had net cash inflow from operating activities of
$ net cash outflow for investing activities of $ and net cash inflow from financing activities of $ All revenue
and expense events were cash events. The following accounts and balances represent the financial condition of Room Designs,
Incorporated as of December Year before closing.
Required
a Assume that the net cash inflow from financing activities of $ was caused by three events. Based on the given information,
identify these events and determine the cash flow associated with each event.
b What did the company purchase that resulted in the cash outflow from investing activities?
c Prepare an income statement for the year ended December Year
c Prepare a statement of changes in stockholders' equity for the year ended December Year
c Prepare a balance sheet as of December Year
c Prepare a statement of cash flows for the year ended December Year