27) Mr. Wizard's Magic Shoppe had the following condensed balance sheet at the end of operation for 2010:

Mr. Wizard's Magic Shoppe

Balance Sheet

December 31, 2010

Cash	$40,000		Current Liabilities	$35,000
Other current assets	60,000		Long-term Notes Payable	40,000
Total current assets	$100,000		Bonds Payable	50,000
Investments	$25,000		Capital Stock	150,000
Fixed assets (net)	110,000		Retained earnings	80,000
Land	$120,000
Total assets	$355,000		Total Liabilities and Equity	$355,000

During 2011, the following occurred

a. Mr. Wizard's sold some of its investments for $13,000 which resulted in a gain of $300 after taxes. The gain (net of taxes) has been included in the company's 2011 net income.

b. Additional land for a plant expansion was purchased for $25,000.

c. Bonds payable were paid in the amount of $10,000.

d. An additional $35,000 in capital stock was issued.

e. Dividends of $15,000 were paid to stockholders.

f. Net income for 2011 was $48,000 after allowing for $15,000 in depreciation.

g. A second parcel of land was purchased through the issuance of $10,000 in bonds, and $5,000 in long-term notes payable.

Required:

a. Prepare a statement of cash flows for the year ended 12/31/2011. (check figure: ending cash balance = $72,500)

b. Prepare a condensed balance sheet for Mr. Wizard's at December 31, 2011.

28) Given the information below, calculate the company's cash balance at the end of the year.

Cash Balance at Beginning of Year	$80,000
Activity During the Year
Increase in Accounts Payable	$60,000
Decrease in Accounts Receivable	$40,000
Depreciation Expense	$500,000
Net Income	$2,000,000
Purchase of Fixed Assets	$800,000
Sales of Common Stock	$100,000
Decrease in Notes Payable	$85,000
Dividends Paid	$15,000