Working backward through the statement of cash flows Quinta Company presents the balance sheet shown in Exhibit 5.34 and the statement of cash flows shown in Exhibit 5.35 for 2008. The firm sold investments, equipment and land for cash at their net book value. The accumulated depreciation of the equipment sold was $20,000. Prepare a balance sheet for the beginning of the year. January 1,2008.

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Quinta Company All Balance Sheet Accounts December 31, 2008 EXHIBIT 5.34 ASSETS Cash.. 25,000 Accounts Receivable . 220,000 Merchandise Inventories 320,000 Land... 40,000 Buildings and Equipment (at cost) 500,000 Less Accumulated Depreciation. (200,000) Investments (noncurrent) 100,000 $1,005,000 Total Assets . LIABILITIES AND SHAREHOLDERS EQUITY Accounts Payable ... $ 280,000 Other Current Liabilities a5,000 Bonds Payable. 100,000 Common Stock . 200,000 Retained Earnings 340,000 $1,005,000 Total Liabilities and Shareholders Equity Quinta Company Statement of Cash Flows For Year of 2008 EXHIBIT 5.35 Operations Net Income.. S 200,000 Additions: Depreciation Expense.. Increase in Accounts Payable 60,000 25,000 Subtractions: Increase in Accounts Receivable (30,000) Increase in Merchandise Inventories. (40,000) Decrease in Other Current Liabilities (45,000) Cash Flow from Operations... S 170,000 Investing $ 40,000 Sala of Investments. Sale of Buildings and Equipment Sala of Land.... 15,000 10,000 Acquisition of Buildings and Equipment Cash Flow from Investing.. (130,000) (65,000) Financing $ 60,000 Common Stock Issued Bonds Issued .. 40,000 Dividends Paid (200,000) Cash Flow from Financing (100,000) 5,000 Net Change in Cash.