Problem: Module 3 Textbook Problem 11 Learning Objectives: .3-9 Identify the primary characteristics of sole proprietorships, partnerships, and corporations 3-12 Show how issuing different classes of stock affects financial statements Astro Corporation was started with the issue of 4,700 shares of $9 par stock for cash on January 1, Year 1. The stock was issued at a market price of $15 per share. During Year 1, the company earned $59,000 in cash revenues and paid $39,530 for cash expenses. Also, a $3,200 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 Year 1 fiscal year. Income Statement Stmt of Changes Balance Sheet Stmt of Cash Flows Prepare a balance sheet. ASTRO CORPORATION Balance Sheet As of December 31, Year 1 Assets Cash Total assets 0 Liabilities Stockholders' equity Paid-in capital in excess of par $ Common stock 42,300 Total Paid-In Capital Total liabilities and stockholders' equity 69 $ 0 $ 0 42,300 16,270 $ 58,570 < Stmt of Changes Stmt of Cash F Prepare a statement of cash flows. (Cash outflows should be indicated with a ASTRO CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Receipts from revenues Paid for expenses Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Paid for dividend Proceeds from issue of stock Net cash flow from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance $ 59,000 (39,530) $ 19,470 $ 0 0 $ 0 (3,200) 0 (3,200) 16,270 0 $ 16,270 < Balance Sheet Stmt of Cash