Chapter 16, Problem P16A.43BPGB

To determine

Income statement:

An income statement is concerned with the operations of a business expressed as income, expenses and profit or loss over a period.

Balance sheet:

A Balance sheet is a financial statement which is concerned with the financial activity that occurred during a period, expressed as assets and liabilities of the business.

Statement of Cash Flow:

Statement of Cash flow financial statement that shows the cash inflows and outflows of a company from operating activities, investing activities and financing activities during a particular period of time.

To plan:

1. DRC’s income statement for the year ended December 31, 2018.

2. DRC’s balance sheet at December 31, 2018.

3. DRC’s statement of cash flows using indirect method for the year ended December 31, 2018