Piedmont Play, Inc. reports the following balance sheet on 1/1/2023:

	1/1/2023
Cash	250,000
Land	400,000
Total Assets	650,000
Note Payable	500,000
Common Stock	150,000
Total Liabilities and Stockholders’ Equity	650,000

On January 2nd, 2023 the company bought playground equipment for $150,000. The CFO estimates that the equipment will help the company generate revenue for 5 years. After 5 years, the CFO intends to sell the equipment to a boys and girls club for $30,000.

Assume that nothing else happens except that the equipment is used for 5 years and then at the end of 5 years on 12/31/2027, the equipment is sold for 42,000. (During this time the company is earning revenue from selling tickets to the playground and paying other bills such as salaries and interest but we will ignore that for simplicity).

1.  Required
2. 
   
3. Company’s balance sheet 
4. Income statement and 
5. Statement of cash flows for the next 5 years using indirect method

You are only recording the purchase, use and sale of the equipment.

Answer rating: 100% (QA)

Companys balance sheet Assets Cash250000 Land400000 Playground Equipment net108000 150000 42000 Tota... View the full answer