Prepare a retained earnings statement for the year ended

Reference no: EM131526299

Question: Conwell Corporation began operations on January 1, 2007, as an online retailer of computer software and hardware. The following financial statement data were taken from Conwell's records at the end of its first year of operations, December 31, 2007.

Accounts payable $ 42,000

Accounts receivable 67,200

Capital stock 350,000

Cash ?

Cash payments for operating activities 980,000

Cash receipts from operating activities 1,171,800

Cost of sales 560,000

Dividends 35,000

Income tax expense 196,000

Income taxes payable 28,000

Interest expense 21,000

Inventories $ 126,000

Note payable (due in 2015) 140,000

Property, plant, and equipment 529,200

Retained earnings ?

Sales 1,239,000

Selling and administrative expense 147,000

Instructions: 1. Prepare an income statement for the year ended December 31, 2007.

2. Prepare a retained earnings statement for the year ended December 31, 2007.

3. Prepare a balance sheet as of December 31, 2007.

4. Prepare a statement of cash flows for the year ended December 31, 2007.

Reference no: EM131526299

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