Dust, Sweep, Repeat Services, Inc. began its operations on January 1, 20Y7 (see Problem 2-3). After its second year of operations, the following amounts were taken from the accounting records of Dust, Sweep, Repeat Services, Inc., as of December 31, 20Y8.

Cash ..........................................................               ?

Common stock ........................................  $ 55,000

Dividends .................................................      25,000

Fees earned .............................................   443,000

Interest expense .....................................        3,600

Land ..........................................................   170,000

Miscellaneous expense ..........................        6,900

Notes payable ........................................       60,000

Rent expense .........................................       50,000

Salaries expense ....................................    190,000

Taxes expense ........................................      32,500

Utilities expense ........................................   60,000

Instructions

1. Prepare an income statement for the year ended December 31, 20Y8.

2. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y8. (Note: The retained earnings at January 1, 20Y8, was $24,000.)

3. Prepare a balance sheet as of December 31, 20Y8.

4. Prepare a statement of cash flows for the year ended December 31, 20Y8. (Hint: You should compare the asset and liability amounts of December 31, 20Y8, with those of December 31, 20Y7, to determine cash used in investing and financing activities. See Problem 2-3 for the December 31, 20Y7, balance sheet amounts.)