question 7

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all the same questin has 4 parts

......... vy Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2021. $149,000 Accounts Payable Accounts Receivable 19,000 79,000 Cash (balance on September 1, 2020) Cash (balance on August 31, 2021) Common Stock 90,000 100,000 Dividends 14,000 Equipment 759,000 Notes Payable. 34,000 115,000 office Expense Prepaid Rent 54,000 414,000 975,000 Retained Earnings (beginning) Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Supplies 174,000. Utilities Expense Other cash flow information: Additional investments by stockholders Cash paid to purchase equipment Cash paid to suppliers and employees. Repayments of borrowings Cash received from customers Cash received from borrowings Dividends paid in cash 1,738,000 33,000 550,000 $ 36,000 44,000 1,498,000 159,000 1,681,000 9,000 14,000 CHEESE FACTORY INCORPORATED Statement of Cash Flows + Cash Flows from Operating Activities Cash Received from Customers Cash Paid to Suppliers and Employees Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Paid to Purchase Equipment Cash Provided by Investing Activities Cash Flows from Financing Activities Cash Received from Customers Dividends Paid to Stockholders Repayments of Borrowings Cash Received from Borrowings Dividends Paid to Stockholders Cash Used in Financing Activities Decrease in Cash Cash at September 1, 2020 Cash at August 31, 2021 $ 1,681,000 (1,498,000) (44,000) 36,000 (14,000) (159,000) 9,000 $ $ $ 183,000 (44,000) (128,000) 11,000 79,000 90,000 Required information [The following information applies to the questions displayed below.] Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $54,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $49,500, amounts due from customers from sales of books, $28,400; equipment, $53,000; amounts owed to publishers for books purchased, $8,900; one-year notes payable to a local bank for $5,100. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet at December 31, 2020. READER DIRECT Balance Sheet At December 31, 2020 Assets Liabilities Cash Accounts Payable Notes Payable Accounts Receivable Equipment Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity Total Assets $ Total Liabilities $ 8,900 8,900 8,900 Required information [The following information applies to the questions displayed below.] Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $54,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $49,500; amounts due from customers from sales of books, $28,400, equipment, $53,000; amounts owed to publishers for books purchased, $8,900; one-year notes payable to a local bank for $5,100. No dividends were declared or paid to the stockholders during the year. 2. Using the retained earnings equation and an opening balance of $0, work backwards to compute the amount of net income for the year ended December 31, 2020. Required information [The following information applies to the questions displayed below.] Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $54,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $49,500; amounts due from customers from sales of books, $28,400; equipment, $53,000; amounts owed to publishers for books purchased, $8,900; one-year notes payable to a local bank for $5,100. No dividends were declared or paid to the stockholders during the year. 4. Assuming that Reader Direct generates net income of $5,500 and pays dividends of $3,500 in 2021, what would be the ending Retained Earnings balance at December 31, 2021