The following trial balance has been prepared from the ledger of Obelisk Corporation at December 31, 2017, following its first year of operations.
Additional information:
|
a. |
Obelisk assumed $100 of long-term debt during the year. |
|
b. |
Obelisk issued common shares for equipment, $40. Other equipment was purchased for $120 cash. No equipment was sold during the year. |
|
c. |
Land costing $30 was purchased, then sold during the year for $50. |
|
d. |
Some borrowings were repaid during the year for $20 cash. |
|
e. |
The company declared dividends of $15 during the year. |
Required:
- Calculate retained earnings at December 31, 2017.
- Prepare a statement of cash flows.
- Explain what the statement of cash flows tells you about Obelisk Corporation at December 31, 2017.
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