(Preparation of a Statement of Cash Flows and a Balance Sheet)

(LO 3, 5) Grant Wood Corporation's balance sheet at the end of 2016 included the following items.

Current assets (Cash $82,000)	$235,000	Current liabilities	$150,000
Land	30,000	Bonds payable	100,000
Buildings	120,000	Common stock	180,000
Equipment	90,000	Retained earnings	44,000
Accum. depr.buildings	(30,000)	Total	$474,000
Accum. depr.equipment	(11,000)
Patents	40,000
Total	$474,000

The following information is available for 2017.

1.Net income was $55,000.

2.Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $10,000.

3.Depreciation expense was $4,000 on the building and $9,000 on equipment.

4.Patent amortization was $2,500.

5.Current assets other than cash increased by $29,000. Current liabilities increased by $13,000.

6.An addition to the building was completed at a cost of $27,000.

7.A long-term investment in stock was purchased for $16,000.

8.Bonds payable of $50,000 were issued.

9.Cash dividends of $30,000 were declared and paid.

10.Treasury stock was purchased at a cost of $11,000.

Instructions

(Show only totals for current assets and current liabilities.)

(a)

Prepare a statement of cash flows for 2017.

(b)

Prepare a balance sheet at December 31, 2017.