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Required information [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $40,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,200 cash. 3. Earned $17,300 in cash revenue. 4. Paid $12,800 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,100. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period.

Required information [The following information applies to the questions displayed below] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $40,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,200 cash. 3. Earned $17,300 in cash revenue. 4. Paid $12,800 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,100. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{ Statement of Cash Flows } \\ \hline \multicolumn{3}{|c|}{ For the Year Ended December 31, Year 1} \\ \hline Cash flows from operating activities: & & \\ \hline Cash receipts from issue of stock & $40,000 & = \\ \hline Cash receipts from revenue & 17,300 & \\ \hline Cash outflow for depreciation & (2,620) & \\ \hline Net cash flow from operating activities & & $54,680 \\ \hline Cash flows from investing activities: & & \\ \hline Cash outflow for cooktop & $(15,200) & \\ \hline Cash payment for salaries & (12,800) & \\ \hline Net cash flow from investing activities & & (28,000) \\ \hline Cash flows from financing activities: & & \\ \hline Net cash flow from financing activities & & 0 \\ \hline Net change in cash & & 26,680 \\ \hline Plus: Beginning cash balance & & 00 \\ \hline Ending cash balance & & $26,680 \\ \hline \end{tabular}

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