Reference no: EM131765115
Problem - Preparation of a Statement of Cash Flows and a Balance Sheet
Chekov Corporation's balance sheet at the end of 2009 included the following items.
|
Current assets
|
$235,000
|
|
Current liabilities
|
$150,000
|
|
Land
|
30,000
|
|
Bonds payable
|
100,000
|
|
Building
|
120,000
|
|
Common stock
|
180,000
|
|
Equipment
|
90,000
|
|
Retained earnings
|
44,000
|
|
Accum. depr.-building
|
(30,000)
|
|
Total
|
$474,000
|
|
Accum. depr.-equipment
|
(11,000)
|
|
|
|
|
Patents
|
40,000
|
|
|
|
|
Total
|
$474,000
|
|
|
|
The following information is available for 2010.
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 stock 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 stock was purchased at a cost of $11,000.
Required -
(a) Prepare a statement of cash flows for 2010.
(b) Prepare a balance sheet at December 31, 2010.