XYZ Company Balance Sheet December 31, 20X2 Dec. 31, 20X2 Dec. 31, 20X1 Inc./Dec. Cash Accounts Recevable Inventories Investments Land Equipment Accumulated depreciation Equipment 25,000 30,000 23,000 15,000 60,000 88,000 22,000 10,000 19,000 40,000 0 54,000 3,000 20,000 4,000 (25,000) 60,000 34,000 3,000 (8,000) 233,000 (5,000) 140,000 Accounts payable Accrued expenses Dividends payable Common stock 16,000 20,000 25,000 120,000 18,000 3,000 14,000 80,000 (2,000) 17.000 11,000 40,000 Pald-in capital in excess of par Retained earnings 20,000 32,000 233,000 15,000 10,000 140,000 5,000 22.000 a. The investments were sold for $24,000 cash. b. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $50,000 credit to Retained Earnings for net income. f. There was a $28,000 debit to Retained Earnings for cash dividends declared. STATEMENT OF CASH FLOWS Cash flows from Operating Activities: Net Income Add: Decrease in inventories $ Loss on sale of investmen Depreciation expense Deduct: Increase in acc. receivable Decrease in accounts pay. Decrease in accrued expe Net cash flows from operating activities Cash flows from Investing Activities: Add: Proceeds from sale of inve $ $ Deduct: Purchase of land Purchase of equipment Deduct: Purchase of land Purchase of equipment Net cash flows from investing activities Cash flows from Financing Activities: Add: Issuance of common stoch Deduct: Dividends paid Net cash flows from financing activities Increase or decrease in cash Cash at the beginning of the year Cash at the end of the year