- Requirements 1. What is the purpose of the statement of cash flows? 2. Prepare NARRC's income statement for the year ended December 31, 2024. Use the single-step format, with all revenues listed together and all expenses listed together. 3. Prepare NARRC's balance sheet at December 31, 2024. 4. Prepare NARRC's statement of cash flows using the indirect method for the year ended December 31, 2024. Print Done X More info a. On January 1, 2024, NARRC issued no par common stock for $475,000. b. Early in January, NARRC made the following cash payments: 1. For store fixtures, $49,000 2. For merchandise inventory, $260,000 3. For rent expense on a store building, $18,000 c. Later in the year, NARRC purchased merchandise inventory on account for $237,000. Before year-end, NARRC paid $137,000 of this accounts payable. d. During 2024, NARRC sold 2,300 units of merchandise inventory for $225 each. Before year-end, the company collected 95% of this amount. Cost of goods sold for the year was $260,000, and ending merchandise inventory totaled $237,000. e. The store employs three people. The combined annual payroll is $82,000, of which NARRC still owes $2,000 at year-end. f. At the end of the year, NARRC paid income tax of $24,000. There are no income taxes payable. g. Late in 2024, NARRC paid cash dividends of $42,000. h. For store fixtures, NARRC uses the straight-line depreciation method, over five years, with zero residual value. Print Done - X Requirement 2. Prepare NARRC's income statement for the year ended December 31, 2024. Use the single-step format, with all revenues listed together and all expenses listed together. North American Reserve Rare Coins Income Statement Year Ended December 31, 2024 Revenue: Expenses: Total Expenses Net Income