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' equityExplanation / 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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