Padget Home Services began its operations on January 1, 20Y7 (see Problem 2-3). After its second year of operations, the following amounts were taken from the accounting records of Padget Home Services, Inc., as of December 31, 20Y8

Instructions
1. Prepare an income statement for the year ending December 31, 20Y8.
2. Prepare a statement of stockholders' equity for the year ending December 31, 20Y8.
3. Prepare a balance sheet as of December 31, 20Y8.
4. Prepare a statement of cash flows for the year ending December 31, 20Y8. You should compare the asset and liability amounts of December 31, 20Y8, with those of December 31, 20Y7, to determine cash used in investing and financing activities. See Problem 2-3 for the December 31, 20Y7, balance sheet amounts.

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Cash Common stock Dividends Fees earned Interest expense Land Miscellaneous expense Notes payable Rent expense Salries expense Taxes expense Utilities expense 110,000 50,000 886,000 7,200 340,000 13,800 120,000 100,000 380,000 65,000 20,000