Lamar Corporation began operations on January 1, 2004, as an online retailer of computer software and hardware. The following financial statement data were taken from Lamar’s records at the end of its first year of operations, December 31, 2004.
|
Accounts payable |
$ 30,000 |
|
Accounts receivable |
48,000 |
|
Capital stock |
250,000 |
|
Cash |
? |
|
Cash payments for operating activities |
700,000 |
|
Cash receipts from operating activities |
837,000 |
|
Cost of sales |
400,000 |
|
Dividends |
25,000 |
|
Income tax expense |
140,000 |
|
Income taxes payable |
20,000 |
|
Interest expense |
15,000 |
|
Inventories |
90,000 |
|
Note payable due in 2010 |
100,000 |
|
Property, plant, and equipment |
378,000 |
|
Retained earnings |
? |
|
Sales |
885,000 |
|
Selling and administrative expense |
105,000 |
Instructions
1. Prepare an income statement for the year ending December 31, 2004.
2. Prepare a retained earnings statement for the year ending December 31, 2004.
3. Prepare a balance sheet as of December 31, 2004.
4. Prepare a statement of cash flows for the year ending December 31, 2004.