As of January 1, 2014, Concepts Inc. had a balance of $4,400 in Cash, $2,450 in Common Stock, and $1,950 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, 2014. Further analysis of the company’s cash account indicated that during the 2014 accounting period, the company had (1) net cash inflow from operating activities of $5,050, (2) net cash outflow for investing activities of $14,100, and (3) net cash inflow from financing activities of $7,350. All revenue and expense events were cash events. The following accounts and balances represent the general ledger of Concepts Inc. as of December 31, 2014, before closing. CONCEPTS INC.
GENERAL LEDGER
Assets = Liabilites + Stockholders' Equity
Cash Note Payable Common Stock Revenue
Bal. 2,700 Bal. 2,900 Bal. 7,750 Bal. 9,800
Land Retained Earning Expenses
Bal. 14,100 Bal. 1,950 Bal. 4,750
Required
A. Assume that the net cash inflow from financing activities of $7,350 was caused by three events. Based on the information above, identify these events and determine the cash flow associated with each event.
B. What did the company purchase that resulted in the cash outflow from investing activities?
C-1. Prepare an income statement for the year ended December 31, 2014.
C-2. Prepare a statement of changes in stockholders' equity for the year Ended Dececember 31, 2014.
C-3. Prepare a balance sheet as of December 31, 2014.
C-4 Prepare a statement of cash flows for the year ended December 31, 2014.