Kay Wing, Inc., prepared the following balance sheet at December 31, 20X0.

Kay Wing, Inc.
Balance Sheet as of December 31, 20X0
Cash	$	65,000
Accounts receivable		37,000
Inventory		70,000
Long-term investments		20,000
Land		39,000
Plant and equipment (net)		109,000
Total assets	$	340,000
Accounts payable	$	33,000
Taxes payable		4,000
Bonds payable		80,000
Capital stock		90,000
Retained earnings		133,000
Total liabilities and stockholders equity	$	340,000

The following occurred during 20X1.

1. A $35,000 note payable was issued.
2. Land was purchased for $50,000.
3. Bonds payable (maturing in 20X5) in the amount of $30,000 were retired by paying $30,000 cash.
4. Capital stock in the amount of $40,000 was issued at par value.
5. The company sold surplus equipment for $14,000. The equipment had a book value of $14,000 at the time of the sale.
6. Net income was $35,500.
7. Cash dividends of $5,000 were paid to the stockholders.
8. 100 shares of stock of another company (considered short-term investments) were purchased for $8,300.
9. $75,000 in bonds were issued. The next day, the proceeds were used to purchase a new building.
10. $12,000 of depreciation was recorded on the plant and equipment.
11. At December 31, 20X1, 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 20X0.

Required:

1. Prepare a statement of cash flows for 20X1.
2. Prepare the December 31, 20X1, balance sheet for Kay Wing, Inc.