Use the following information for questions 22 30 regarding Broad Street Co. in 2015 (assume this is the first year of operations for Broad Street Co., and assume Broad Street pays cash unless noted otherwise, even if it results in Broad Street having a credit balance in cash):

1/1 Issued 10,000 shares of common stock for $10 each 2/1 Pay $200,000 for equipment, 10 year useful life, $20,000 residual value, straight line depreciation ($18,000 depreciation expense per year) 3/1 Sign a 5-year factory lease, paying full amount of $15,000 upfront 3/15 Deliver services to client and bill in full for $300,000 5/1 Purchase $40,000 worth of supplies on credit. By 12/31 10% of supplies are left 8/1 Receive $350,000 in advance payment from a client for services that will be performed by Broad Street in 2016 10/1 Declare and pay $20,000 in dividends 11/1 Purchase $140,000 in inventory 12/1 Pay $6,000 of the 5/1 purchase of supplies

23. What is the cash amount reported on the 12/31/15 Statement of Financial Position?

a. $119,000

b. $53,000

c. $89,000

d. $69,000

e. none of the above

29. What is 2015 Net Income (Loss)?

a. $225,000

b. $245,000

c. $215,000

d. $261,000

e. none of the above