Additional Information on Current Year Transactions

a$.$ Purchased equipment for $$55,000$ cash.

b$.$ Issued $34,000$ shares of common stock for $$5$ cash per share.

c$.$ Declared and pald $$89,640$ in cash dividends.

General Journal tab $-$ Reconstruct the entries to summarize the activity between December $31,$ prior year and December

$31,$ current year.

Direct Method tab $-$ Prepare the Statement of Cash flows for the year ended December $31,$ current year using the direct

method.

Indirect Method tab $-$ Prepare the reconciliation to the indirect method. Clancy Corporation's current year income statement, comparative balance sheets, and additional information

follow. For the year,

$(1)$ all sales are credit sales,

$(2)$ all credits to Accounts Recelvable reflect cash recelpts from customers,

$(3)$ all purchases of inventory are on credit,

$(4)$ all debits to Accounts Payable reflect cash payments for inventory,

$(5)$ Other Expenses are all cash expenses, and

$(6)$ any change in Income Taxes Payable reflects the accrual and cash payment of taxes.