Required:

• Create a cash flow statement for Contest Company, for the year ended December 31, 2015, on the spreadsheet provided.
• Comment on the company's financial performance with respect to major items affecting cash.

Additional Information:

• From the Income Statement, there is a net income of $51 000 in 2015.
• Equipment was amortized for $9 000 in 2015.
• New equipment costing $21 000 was purchased.
• An old, fully amortized piece of equipment that cost $3 000 was discarded; its cost and accumulated amortization were removed from the accounts.
• 1 500 shares of stock were sold and issued at $12 per share.
• The company declared $30 000 of cash dividends during the year and paid $21 000 of dividends.

please answer using this template below

U7A7 Assignment 1 Contest Company Comparative Balance Sheet December 31, 2014 and 2015 . Assets 2015 2014 Cash $63,000 $24,000 Accounts Receivable 48,000 54,000 Merchandise Inventory 126,000 108,000 Equipment 108,000 90,000 1 Accumulated Amortization (24,000) (18,000) 2 Total $321,000 $258,000 3 Liabilities and Equity 4 Accounts Payable $42,000 $30,000 5 Taxes Payable 6,000 12,000 Dividends Payable 9,000 7 Common Stock 198,000 180,000 3 Retained Earnings 66,000 36,000 9 Total $321,000 $258,000 3 1 2 Additional Information: 3 From the Income Statement, there is a net income of $51,000 in 2015. 4 Equipment was amortized for $9,000 in 2015. 5 Equipment costing $21,000 was purchased. Fully amortized equipment that cost $3,000 was discarded; its cost and accumulated amortization were removed from the accounts. 7 1 500 shares of stock were sold and issued at $12 per share. The company declared $30 000 of cash dividends during the year and paid $21 000 of dividends. 3 u 1 Contest Company 2 Statement of Cash Flows 3 For the year ended December 31, 2015 4 5 Operating Activities 6 Net Income 7 Add: 8 9 10 11 12 Less: 13 14 15 Net Cash from Operations 16 Financing Activiti 17 18 19 Investing Activities 20 210 22 23 24 25 20