Reference no: EM132490569

Spears Inc. had the following balance sheet at the end of operations for 2013:

Spears Inc.

Balance Sheet

December 31, 2013

Cash $30,000                               Accounts payable $40,000

Accounts receivable 21,200            Long term notes payable 41,000

Investments-trading 32,000             Common shares 100,000

Plant assets (net) 81,000                 Retained earnings 23,200

Land 40,000 $204,200

$204,200

During 2014, the following occurred:

1. Spears Inc. sold part of it's investment portfolio for $19,000
2. Land was purchased for $20,000 cash
3. Long term notes payable in the amount of $17,000 were paid
4. An additional $26,000 in common shares was issued
5. Dividends of $9,200 were declared and paid to shareholders
6. Net income for 2014 was $32,000 after allowing for amortization of $12,000
7. At Dec. 31, 2014 cash was $52,400; accounts receivable were $41,600 and accounts payable remained at $40,000

Instructions:

Question 1: create a statement of cash flows for the year ended Dec. 31, 2014.