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Rose Bowl Candies: December 2003 Financial Statements and Cash Flows

This is the financial summary of Rose Bowl Candies, Inc. for the month of December 2003. It includes the income statement, statement of changes in shareholder's equity, statement of cash flows, and the balance sheet.

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Rose Bowl Candies: December 2003 Financial Statements and Cash Flows

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  1. Quiz #1 You decide to sell candies at a soccer game during December 2003 at the Rose Bowl to make some extra money. You have the following transactions: • You invest $3000 and receive stock in your new company, Rose Bowl Candies, Inc. • You pay the rent for the space during the bowl game, cash of $300. • You buy 1000 1bs candies for $6 each pound, paying $1500 cash and pay the rest after the game. • You sell candies for $11 per pound, all for cash. Required: Prepare the income statement, the statement of changes in shareholders’ equity, and the statement of cash flows for December 2003. Prepare the balance sheet at December 31, 2003.

  2. Rose Bowl Candies Inc.Income StatementFor the month ended December 31, 2001 Revenue Sales $11000 Expenses Cost of sales $ 6000 Rent expenses 3006300 Net income $ 4700

  3. Rose Bowl Candies Inc Statement of Changes in Shareholder’s Equity For the month ended December 31, 2001 Beginning contributed capital 0 Contributions during the year 3000 Ending contributed capital 3,000 Beginning retained earning $ 0 Net Income for the year 4700 Dividends 0 Ending Retained earning $4700 Total shareholder’s equity $7700

  4. Rose Bowl Candies, IncBalance SheetAS of December 31, 2003 Assets Liabilities + Shareholder’s Equity Cash $12200 Accounts payable 4500 Inventory 0 Common stock 3,000 Prepaid Rent 0 Retained earnings 4700 Total assets $ 12200 Total L + SH’s Equity $12200

  5. Rose Bowl Candies, IncStatement of Cash FlowsFor the month ended December 31, 2003 Cash from operating activities Cash from customers $ 11000 Cash paid for supplies (1500) Cash paid for rent (300) Total cash from operations $9200 Cash from investing activities -0- Cash from financing activities Cash received from issuance of Common Stock 3,000 Dividends (0) Total Cash from Financing 3000 Net Increase in Cash $ 12200 Cash, Beginning Balance 0 Cash, ending Balance $12200

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