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Kay Wing, Inc., prepared the following balance sheet at December 31, 2016. Balance Sheet as of December 31, 2016 Cash Accounts receivable Inventory Long-term investments
Kay Wing, Inc., prepared the following balance sheet at December 31, 2016. Balance Sheet as of December 31, 2016 Cash Accounts receivable Inventory Long-term investments Land Plant and equipment (net) Total assets Accounts payable Taxes payable Bonds payable Capital stock Retained earnings Total liabilities and stockholders' equity $ 65,000 37,000 70,000 20,000 39,000 109,000 $340,000 $ 33,000 4,000 80,000 90,000 133,000 $340,000 The following occurred during 2017 1. $15,000 in cash and a $35,000 note payable were exchanged for land valued at $50,000. 2. Bonds payable (maturing in 2021) in the amount of $30,000 were retired by paying $28,000 cash. 3. Capital stock in the amount of $40,000 was issued at par value. 4. The company sold surplus equipment for $10,000. The equipment had a book value of $14,000 at the time of the sale. 5. Net income was $35,500. 6. Cash dividends of $5,000 were paid to the stockholders. 7. 100 shares of stock (considered short-term investments) were purchased for $8,300. 8. A new building was acquired through the issuance of $75,000 in bonds. 9. $12,000 of depreciation was recorded on the plant and equipment. 10. At December 31, 2017, Cash was $93,200, Accounts receivable had a balance of $41,500, Inventory had increased to $73,000, and Accounts payable had fallen to $25,500. Long-term investments and Taxes payable were unchanged from 2016. Required: 1. Prepare a statement of cash flows for 2017. 2. Prepare the December 31, 2017, balance sheet for Kay Wing, Inc. Kay Wing, Inc. Statement of Cash Flows For the Year Ended 12/31/2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Cash flows from investing activities Cash flows from financing activities Cash at beginning of year Cash at end of year
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