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Astro Corporation was started with the issue of 5,700 shares of $10 par common s

ID: 2394091 • Letter: A

Question

Astro Corporation was started with the issue of 5,700 shares of $10 par common stock for cash on January 1, 2016. The stock was issued at a market price of $17 per share. During 2016, the company earned $60,900 in cash revenues and paid $40,803 for cash expenses. Also a $4,400 cash dividend was paid to the stockholders. Required Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Astro Corporation's 2016 fiscal year. (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount. Round your answers to the nearest whole dollar amount.) ASTRO CORPORATION Income Statement For the Year Ended December 31, 2016 ASTRO CORPORATION Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2016 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity

Explanation / Answer

Income Statement :-

Revenue

60900

(-) Expense

40803

Net Income

20097

Statement of Changes in Stockholders Equity :-

Beginning common stock

0

Common Stock Issue (5700 * 17)

96900

Ending Common Stock

96900

Beginning Retained Earnings

0

Net Income during the year

20097

Dividend

-4400

Ending Retained Earnings

15697

Total Stockholders Equity

112597

Balance Sheet :-

Assets:-

Cash (96900 + 60900 – 40803 – 4400)

112597

Total Assets

112597

Liabilities

0

Stockholders Equity :-

Common stock

57000

Additional paid in capital

39900

Total Paid in capital

96900

Retained Earnings

15697

Total Liabilities & Stockholders Equity

112597

Statement of Cash flow :-

Cash Flow from Operating Activities :-

Cash collect from customers

60900

Cash Paid for Exp

-40803

Cash Flow from Operating Activities (A)

20097

Cash Flow from Investing Activities :-

Cash Flow from Investing Activities (B)

0

0

Cash Flow from Financing Activities :-

Common stock issue

96900

Dividend Paid

-4400

Cash Flow from Financing Activities (C)

92500

Net change in cash

112597

Add; Beginning balance of cash

0

Ending Balance of cash

112597

Revenue

60900

(-) Expense

40803

Net Income

20097

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