Classic Reserve Rare Coins was formed on January 1, 2012. Additional data for the year follows:?
a. on jan 1 2012, crrc issued common stock for $425000
b. early in jan. crrc made the following cash payments:
1. for store fixtures $54000
2. for inventory $270000
3. for rent expense on a store building $10000
c. later in the year crrc purchased inventory on account for $243000. Before year end crrc paid 163000 of this account payable
d. during 2012 crrc sold 2100 units of inventory for $350 each. Before year ended the company collected 80% of this. Cost of goods sold for the year was 260000 and ending inventory totaled $253000.
e. the store employs 3 people. The combined annual payroll is $94000 of which crrc still owes $4000 at years end
f. at the end of the year, crrc paid income tax of $23000
g. late in 2012 crrc paid cash dividends of $41000
h. for equipment, crrc uses the straight line depreciation method, over 5 years, with 0 residual value.

1. what is the purpose of the cash flow statement?
2. prepare crrc's income statement for the year ended December 31, 2012. Use the single step format, with all revenues listed together and all expenses listed together.
3. prepare crrc's balance sheet at December 31, 2012.
4. prepare crrc's statement of cash flows using the indirect method for the year ended December 31, 2012.


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