XY Corporations statement of financial position at the end of 2016 included the following items.

Land $ 30,000

Buildings 120,000

Equipment 90,000

Accum. depr.buildings (30,000)

Accum. depr.equipment (11,000)

Patents 40,000

Current assets 235,000

Total $474,000

Current liabilities 150,000

Bonds payable $100,000

Share capitalordinary 180,000

Retained earnings 44,000

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 $9,000.

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 $25,000. 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 debt securities was purchased for $16,000.

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

9. Cash dividends of $25,000 were declared and paid.

10. Treasury shares were purchased at a cost of $11,000.

Instructions:

1. Prepare a statement of financial position at December 31, 2017.
2. Prepare a statement of cash flows for 2017.
3. Discuss the uses and limitations of the statement of financial position and the statement of cash flows.