Fred Slezak presented the following comparative balance sheet:

FRED SLEZAK CORPORATION

	FRED SLEZAK CORPORATION
	Statement of Cash Flows
	For the Year Ending December 31, 20X5
	Cash flows from operating activities:
				$ -
			$ -
			-
			-
			-
			-
			-
			-	-
				$ -
	Cash flows from investing activities:
			$ -
				-
	Cash flows from financing activities:
			$ -
			-
				-
	Net increase in cash			$ -
	Cash balance at January 1, 20X5			9,000
	Cash balance at December 31, 20X5			$ -
		-----------------
	Noncash investing/financing activities:
				$ -
		-----------------
	Supplemental information:
				$ -
				-

Comparative Balance Sheet

December 31, 20X5 and 20X4

Assets

20X5

20X4

Current assets

Cash

$ 664,000

$ 9,000

Accounts receivable

375,000

345,000

Inventories

150,000

160,000

Prepaid expenses

35,000

25,000

Total current assets

$ 1,224,000

$ 539,000

Property, plant, & equipment

Land

$ 300,000

$ 400,000

Building

700,000

700,000

Equipment

530,000

450,000

$ 1,530,000

$ 1,550,000

Less: Accumulated depreciation

(300,000)

(270,000)

Total property, plant, & equipment

$ 1,230,000

$ 1,280,000

Total assets

$ 2,454,000

$ 1,819,000

Liabilities

Current liabilities

Accounts payable

$ 112,000

$ 119,000

Interest payable

2,000

-

Total current liabilities

$ 114,000

$ 119,000

Long-term liabilities

Long-term note payable

80,000

-

Total liabilities

$ 194,000

$ 119,000

Stockholders' equity

Common stock ($1 par)

$ 700,000

$ 600,000

Paid-in capital in excess of par

800,000

400,000

Retained earnings

760,000

700,000

Total stockholders' equity

$ 2,260,000

$ 1,700,000

Total liabilities and equity

$ 2,454,000

$ 1,819,000

Additional information about transactions and events occurring in 20X5 follows:

Dividends of $55,000 were declared and paid.

Accounts payable and accounts receivable relate solely to purchases and sales of inventory. Prepaid items related only to advertising expenses.

The decrease in land resulted from the sale of a parcel at a $45,000 loss. No land was purchased during the year. Equipment was purchased during the year in exchange for a promissory note payable. No equipment was sold.

The increase in paid-in capital resulted from issuing additional shares for cash.

The income statement for the year ending December 31, 20X5, included the following key amounts:

Sales

$ 2,000,000

Cost of goods sold

1,200,000

Salaries expense

400,000

Advertising expense

150,000

Depreciation expense

30,000

Utilities expense

15,000

Interest expense

5,000

Loss on sale of land

45,000

Income tax expense

40,000

Net income

115,000

Prepare Fred Slezak's statement of cash flows for the year ending 20X5. Use the indirect approach, and include required supplemental information about cash paid for interest and taxes.

	FRED SLEZAK CORPORATION
	Statement of Cash Flows
	For the Year Ending December 31, 20X5
	Cash flows from operating activities:
				$ -
			$ -
			-
			-
			-
			-
			-
			-	-
				$ -
	Cash flows from investing activities:
			$ -
				-
	Cash flows from financing activities:
			$ -
			-
				-
	Net increase in cash			$ -
	Cash balance at January 1, 20X5			9,000
	Cash balance at December 31, 20X5			$ -
		-----------------
	Noncash investing/financing activities:
				$ -
		-----------------
	Supplemental information:
				$ -
				-