after its second year of operations the following amounts were taken from the accoun 637001

After its second year of operations, the following amounts were taken from the accounting records of Mallard Consulting Services Inc. as of December 31, 2005. Mallard Consulting Services began its operations on January 1, 2004, and uses the cash basis of accounting.

Capital stock	$ 20,000
Cash	?
Dividends	20,000
Fees earned	289,000
Interest expense	6,000
Land	171,000
Miscellaneous expense	8,000
Notes payable	50,000
Rent expense	40,000
Salaries expense	90,000
Taxes expense	20,000
Utilities expense	45,000

Instructions

1. Prepare an income statement for the year ending December 31, 2005.

2. Prepare a retained earnings statement for the year ending December 31, 2005.

Note: The Retained Earnings at January 1, 2005, was $115,000.

3. Prepare a balance sheet as of December 31, 2005.

4. Prepare a statement of cash flows for the year ending December 31, 2005.

Hint: You should compare the asset and liability amounts of December 31, 2005, with those of December 31, 2004, to determine cash used in investing and financing activities. for the December 31, 2004 balance sheet amounts.