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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:1. Calculate retained earnings at December 31, 2017.2. Prepare a statement of cash flows.3. Explain what the statement of cash flows tells you about Obelisk
Corporation at December 31, 2017.
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