Reference no: EM131722313
Problem - Lander Inc. had the following balance sheet at December 31, 2014:
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LANDER, INC. Balance Sheet December 31, 2014
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Cash
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$45,300
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Accounts payable
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$33,800
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Accounts receivable
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$18,900
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Bonds payable
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$35,000
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Investments
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$25,000
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Common stock
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$190,000
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Plant assets (net)
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$78,000
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Retained earnings
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$18,400
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Land
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$110,000
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Total Assets
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$277,200
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Total Liabilities & Equity
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$277,200
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During 2015, the following events occurred:
1.Lander liquidated its available-for-sale investment portfolio at a loss of $6,500.
2.A tract of land was purchased for $31,000 cash.
3.An additional $20,000 in common stock was issued at par.
4.Dividends totalling $5,000 were declared and paid to stockholders.
5.Net income for 2015 was $29,000, including $7,000 in depreciation expense.
6.A second tract of land was purchased through the issuance of $25,000 in additional bonds.
7.At December 31, 2015, cash was $72,650, accounts receivable was $35,250, and accounts payable was $32,500.
In an Excel spreadsheet:
- Prepare a statement of cash flows for the year 2015 for Lander.
- Prepare the balance sheet as it would appear as of December 31, 2015.