Question: Shiver Corporation began operations on September 1, 2006, as an online retailer of camping and outdoor recreational equipment. The following financial statement data were taken from Shiver's records at the end of its first year of operations, August 31, 2007:
Accounts payable $ 32,400
Accounts receivable 51,840
Cash ?
Cash receipts from operating activities 903,960
Cash payments for operating activities 756,000
Capital stock 270,000
Cost of sales 432,000
Dividends 27,000
Income tax expense 151,200
Income taxes payable 21,600
Interest expense 16,200
Inventories 97,200
Note payable (due in 2015) 108,000
Property, plant, and equipment 408,240
Retained earnings ?
Sales 955,800
Selling and administrative expense 113,400
Instructions: 1. Prepare an income statement for the year ended August 31, 2007.
2. Prepare a retained earnings statement for the year ended August 31, 2007.
3. Prepare a balance sheet as of August 31, 2007.
4. Prepare a statement of cash flows for the year ended August 31, 2007.