Question & Answer: eSupplies Corporation began operations on January 1, 2011, as an online retailer of computer software and hardware. The fo…..

eSupplies Corporation began operations on January 1, 2011, as an online retailer of computer software and hardware. The following financial statement data were taken from eSupplies’ records at the end of its first year of operations, December 31, 2011.

Accounts payable $20,000

Accounts receivable 60,000

Capital stock 252,000

Cash ?

Cash payments for operating activities 657,000

Cash receipts from operating activities 690,000

Cost of sales 435,000

Dividends 30,000

Income tax expense 53,000

Income taxes payable 8,000

Interest expense 2,000

Inventories 115,000

Note payable (due in 2017) 50,000

Property, plant, and equipment 265,000

Retained earnings ?

Sales 750,000

Selling and administrative expense 80,000

Instructions

1. Prepare an income statement for the year ended December 31, 2011.

2. Prepare a retained earnings statement for the year ended December 31, 2011.

3. Prepare a balance sheet as of December 31, 2011.

4. Prepare a statement of cash flows for the year ended December 31, 2011.