the financial statements at the end of wolverine realty s first month of operations 539350

Wolverine Realty

Income Statement

For the Month Ended April 30, 2014

Fees earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (a)

Expenses:

Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$300,000

Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

100,000

Supplies expense . . . . . .

(b)

Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20,000

Miscellaneous expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25,000

Total expenses . . . . . . .

475,000

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$275,000

Wolverine Realty

Retained Earnings Statement

For the Month Ended April 30, 2014

Retained earnings, April 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (c)

Net income for April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (d)

Less dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

125,000

Increase in retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)

Retained earnings, April 30, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (f )

Wolverine Realty

Balance Sheet

April 30, 2014

Assets

Liabilities

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . .

$462,500

Accounts payable . . . . . . . . . . . . . . . .

$100,000

Supplies . . . . . . . . . . . . . . . . . . . . . . .

12,500

Stockholders’ Equity

Land . . . . . . . . . . . . . . . . . . . . . . . . . . .

150,000

Capital stock . . . . . . . . . . . . . . . . . . . .

$375,000

Total assets . . . . . . . . . . . . . . . . . . . . .

$ (g)

Retained earnings . . . . . . . . . . . . . . .

(h)

Total stockholders’ equity . . . . . . . .

(i)

Total liabilities and stockholders’ equity

$ (j)

Wolverine Realty

Statement of Cash Flows

For the Month Ended April 30, 2014

Cash flows from operating activities:

Cash received from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (k)

Deduct cash payments for expenses and payments to creditors . . . . .

(387,500)

Net cash flows from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . .

$(l)

Cash flows used for investing activities:

Cash payments for acquisition of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(m)

Cash flows from financing activities:

Cash received from issuing capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (n)

Deduct cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(o)

Net cash flows from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . .

(p)

Net increase (decrease) in cash and April 30, 2014, cash balance . . . . . . .

$(q)