The December 31, 2011, Balance Sheet and the 2012 Statement of Cash Flows for Snow, Inc., follow:

Requirement
1. Prepare the December 31, 2012, balance sheet for Snow,Inc.

Transcribed Image Text:

Snow, Inc. Balance Sheet December 31, 2011 Accounts receivable (net) expenses 9 Machinery and equipment (net) Liabilities: Accounts payable Stockholders' equity: Common stock, no par Retained earnings equity Total liabilities and stockholders' equi Snow, Inc Statement of Cash Flows Year Ended December 31, 2012 Cash flows from operating activities: Net income $18,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Loss on sale of equipment Gain on sale of land Change in assets and liabilities: $16,000 15,000 (6,000) Accounts receivable Inventory Prepaid expenses Accounts payable Taxes payable Unearned revenue 10,000 (7,000) 1,000 12,000 (2,500) 1,500 40,000 $58,000 Net cash provided by operating activities Cash flows from investing activities: Purchase of equipment Sale of equipment Sale of land (25,000) 9,000 11,000 Net cash used for investing activities (5,000) Cash flows from financing activities: Repayment of long-term debt Issuance of common stock Dividends paid (dividends declared, $7,000) (16,000) 20,000 (5,000) Net cash provided by financing activities (1,000) 52,000 11,000 $63,000 Increase (decrease) in cash Cash balance, December 31, 2011 Cash balance, December 31, 2012 Snow, Inc. Statement of Cash Flows Year Ended December 31, 2012 Cash flows from investing activities Purchase of equipment Sale of equipment Sale of land (25,000) 9,000 11,000 Net cash used for investing activities (5,000) Cash flows from financing activities: Repayment of long-term debt (16,000) 20,000 5,000) Dividends paid (dividends declared, $7,000) Net cash provided by financing activities (1,000) 52,000 11,000 $63,000 Increase (decrease) in cash Cash balance, December 31, 2011 Cash balance, December 31, 2012