Altoids Company started business by acquiring ($ 60,000) cash from the issue of common stock on January
Question:
Altoids Company started business by acquiring \(\$ 60,000\) cash from the issue of common stock on January 1,2011 . The cash acquired was immediately used to purchase equipment for \(\$ 60,000\) that had a \(\$ 12,000\) salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for \(\$ 6,800\) cash. Altoids uses straightline depreciation.
Required
Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model.
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