equirements 1. Prepare Envoi's income statement for the year ended December 31 , 2016. Use the single step format , with all revenues listed together and all expenses listed together . Prepare Envoi's balance sheet at December . Prepare Envoi's statement of cash flows for the year ended December 31 , 2016. Format cash flows from operating activities by using the indirect method . Comment on the business performance based on the statement of cash flows . 31,
Envoi was formed on January 1 , 2016 , when Envoi issued common shares for $ 500,000 . Early in January 2016 , Envoi made the following cash payments : a 250,000 for equipment b . 200,000 for inventory ( four cars at $ 50,000 each ) c 10,000 for 2016 rent on a store building In February 2016 , Envoi purchased six cars for inventory on account . Cost of this inventory was $ 260,000 ( $ . Before year - end , Envoi paid $ 208,000 of this debt . Envoi uses the FIFO method to account for inventory . During 2016 , Envoi sold eight vintage autos for a total of $ 600,000 . Before year - end , Envoi collected 80 % of this amount . The business employs three people . The combined annual payroll is of which Envoi owes $ 4,000 at year end . At the end of the year , Envoi paid income tax of $ 10,000 . Late in 2016 , Envoi declared and paid cash dividends of $ 11,000 . For equipment , Envoi uses the
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