Problem 4-2 Preparation of a statement of cash flows and a balance sheet (L04-1, LO4-5, LO4-7) Kay Wing, Inc., prepared the following balance sheet at December 31, 20x0. Kay Wing, Inc. Balance Sheet as of December 31, 20xe 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 es The following occurred during 20X1. 1. A $35,000 note payable was issued. 3. Bonds payable (maturing in 20x5) in the amount of $30,000 were retired by paying $30,088 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. 3 Prepare a statement of cash flows for 20X1. (Net cash outflows and amounts to be deducted should be indicated by a minus sign.) 25 points Kay Wing, Inc. Statement of Cash Flows For the Year Ended December 31, 20X1 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities 8 00:57:50 Skipped eBook 0 0 Ask Cash flows from investing activities: Print References Cash flows from financing activities: 0 0 Cash at beginning of year Cash at end of year $ 0 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 TS Prepare the December 31, 20x1, balance sheet for Kay Wing, Inc. 00:57:33 Skipped Kay Wing, Inc. Balance Sheet December 31, 20X1 eBook Ask Print Total assets 0 References Total liabilities and stockholders' equity 5 0