On April $1,2024,$ Brodsky issued $10,000$ common shares for $$20$ per share.

The business employs three people. The combined annual payroll is $$90,000,$ of which

Brodsky owes $$15,000$ at year$-$end. At the end of the year, the company paid income taxes of

$$30,000.$ Late in $2024,$ Brodsky declared and paid stock dividends of $$12,000.$

Brodsky recorded depreciation for the year on the remaining equipment using the double$-$

diminishing$-$balance method. The equipment was estimated to have a useful life of three years

and residual value of $$10,000.$

On July $16,$ Brodsky wrote off the $$12,000$ of accounts deemed uncollectible. At year end,

Brodsky reviewed outstanding accounts receivable and estimated that $$24,000$ of its

outstanding accounts receivable would be uncollectible.

Instructions

a$.$ Use the multiple$-$step format to prepare Brodsky's statement of income for the year ended

December $31,2024.$

b$.$ Prepare Brodsky's statement of changes in shareholders' equity for the year ended December

$31,2024.$

c$.$ Prepare Brodsky's statement of financial position at December $31,2024.$

Prepare Brodsky's statement of cash flows for the year ended December $31,2024.$ Format cash

flows from operating activities using the indirect method.