How would I do the statement of cash flows? (The startup uses straight line when depreciating long-term assets and a perpetual inventory system. It has an estimated tax rate of 35%.) Jan 1st, issued 500 shares of common stock ($0.10 par value) for $50,000. Feb 1st, paid $25,000 to purchase equipment (estimated useful life 10 years; salvage value = 1,540). Feb 28th, issued 100 shares of common stock ($0.10 par value) for $20,000. June 30th, paid $175,000 for a land by signing a 5 year Note Payable, promising to pay 5% interest on June 30th of each of those 5 years. July 1st, purchased 500 units of inventory at $15 each. $2,000 was paid in cash, the rest was on account. July 30th, sold 220 units of inventory for $63 each on account. The inventory came with a 1 year warranty. The company expects that providing the warranty will cost 1% of the sales made. Aug 2nd, incurred $450 of wages expense. Aug 5th, collected $2500 of accounts receivable. Aug 31st, paid $450 of wages payable. Sept 4th, paid $1600 of accounts payable. Dec 31st, incurred and paid $2,000 of utilities expense. Dec 31st, Purchased a copyright for $10,000. The copyright has a 20-year useful life and no residual value. Dec 31st, Purchased a second piece of equipment for $4,100 (estimated useful life 12 years, salvage value 2,000). The company relies on the percentage of credit sales method, and expects that 2% of credit sales will be uncollectible.

How would I do the statement of cash flows?

(The startup uses straight line when depreciating long-term assets and a perpetual inventory system. It has an estimated tax rate of 35%.)

1. Jan 1^st, issued 500 shares of common stock ($0.10 par value) for $50,000.
2. Feb 1^st, paid $25,000 to purchase equipment (estimated useful life 10 years; salvage value = 1,540).
3. Feb 28^th, issued 100 shares of common stock ($0.10 par value) for $20,000.
4. June 30^th, paid $175,000 for a land by signing a 5 year Note Payable, promising to pay 5% interest on June 30^th of each of those 5 years.
5. July 1^st, purchased 500 units of inventory at $15 each. $2,000 was paid in cash, the rest was on account.
6. July 30^th, sold 220 units of inventory for $63 each on account. The inventory came with a 1 year warranty. The company expects that providing the warranty will cost 1% of the sales made.
7. Aug 2^nd, incurred $450 of wages expense.
8. Aug 5^th, collected $2500 of accounts receivable.
9. Aug 31st, paid $450 of wages payable.
10. Sept 4^th, paid $1600 of accounts payable.
11. Dec 31^st, incurred and paid $2,000 of utilities expense.
12. Dec 31^st, Purchased a copyright for $10,000. The copyright has a 20-year useful life and no residual value.
13. Dec 31^st, Purchased a second piece of equipment for $4,100 (estimated useful life 12 years, salvage value 2,000).
14. The company relies on the percentage of credit sales method, and expects that 2% of credit sales will be uncollectible.