AMERICAN RARE COINS
Income Statement
Year Ended December 31, 2024
Revenue:
Sales (2,400 x $275)
$ 660,000
Expenses:
Cost of Goods Sold
$ 250,000
Salaries and Wages Expense
96,000
Depreciation Expense ($53,000/5 years)
10,600
Rent Expense
20,000
Income Tax Expense
17,000
Total Expenses
393,600
Net Income
$ 266,400
AMERICAN RARE COINS
Statement of Cash Flows
Year Ended December 31, 2024
Cash Flows from Operating Activities:
Net Income
$ 266,400
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation Expense
$ 10,600
Increase in Accounts Receivable
(99,000)
Increase in Merchandise Inventory
(329,000)
Increase in Accounts Payable
100,000
Increase in Salaries Payable
3,000
Net Cash Used by Operating Activities
(314,400)
Cash Flows from Investing Activities:
Acquisition of Store Fixtures
(53,000)
Net Cash Used for Investing Activities
(53,000)
Cash Flows from Financing Activities:
Cash Receipt from Issuance of Common Stock
450,000
Cash Payment of Dividends
(44,000)
Net Cash Provided by Financing Activities
406,000
Net Increase (Decrease) in Cash
305,000
Cash Balance, December 31, 2023
0
Cash Balance, December 31, 2024
$ 305,000
AMERICAN RARE COINS
Balance Sheet
December 31, 2024
Assets
Current Assets:
Cash
$305,000
Accounts Receivable ($660,000 × 15%)
99,000
Merchandise Inventory
329,000
Total current assets
$ 733,000
Property, Plant, and Equipment:
Store Fixtures
53,000
Accumulated Depreciation
(10,600)
Total property, plant, and equipment
42,400
Total Assets
$ 775,400
Liabilities
Current Liabilities:
Accounts Payable ($239,000-$139,000)
$ 100,000
Salaries Payable
3,000
Total current liabilities
$ 103,000
Total Liabilities
103,000
Stockholders' Equity
Common Stock, no par
450,000
Retained Earnings
222,400
Total Stockholders' Equity
672,400
Total Liabilities and Stockholders' Equity
$ 775,400
