Kay Wing, Inc., prepared the following balance sheet at December 31, 2013. Kay Wing, Inc. Balance Sheet as of December 31, 2013 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 (continued) Accounts payable Taxes payable Bonds payable Capital stock Retained earnings Total liabilities and stockholders' equity $ 33,000 4,000 80,000 90,000 133,000 $340,000 Proble The following occurred during 2014. 1. $15,000 in cash and a $35,000 note payable were exchanged for land valued at $50,000. 2. Bonds payable (maturing in 2018) 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, 2014, 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 2013. Required: 1. Prepare a statement of cash flows for 2014. 2. Prepare the December 31, 2014, balance sheet for Kay Wing, Inc.