Statement of Cash Flows Pratt & Jordan Development, Inc., constructs homes and offices and sells them to customers.

The financial information shown below was gathered from its accounting records for 2009.

Assume any increase or decrease in the balances from 1/1/09 to 12/31/09 resulted from either receiving or paying cash in the transaction. For example, during 2009 the balance on loans for land holdings increased $75,000 because the company received $75,000 in cash by taking out an additional loan on the land.

Required:
1. Prepare a statement of cash flows for Pratt & Jordan Development, Inc., for the year ended December 31, 2009.
2. Interpretive Question: Does Pratt & Jordan Development, Inc., appear to be in good shape from a cash flow standpoint? What other information would help you analyze the situation?

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Items Cash Cash receipts from customers Loans on land holdings.... Cash distributions to owners Loan on building..... Investments in securities Cash payments for other expenses Cash payments for taxes Cash payments for operating expenses Cash payments for wages and salaries Balance as of Balance as of 1/1/09 12/31/09 $130,000 $175,000 750,000 225,000 300,000 60,000 130,000 80,000 600,000 845,000 32,000 43,000 215,000 135,000