Reference no: EM132944974

Question - Kay Wing, Inc., prepared the following balance sheet at December 31, 2016.

Balance Sheet as of December 31, 2016

Cash $65,000

Accounts receivable 37,000

Inventory 70,000

Long-term investments 20,000

Land 39,000

Plant and equipment (net) 109,000

Total assets $340,000

Accounts payable $33,000

Taxes payable 4,000

Bonds payable 80,000

Capital stock 90,000

Retained earnings 133,000

Total liabilities and stockholders' equity $340,000

The following occurred during 2017.

1. $15,000 in cash and a $35,000 note payable were exchanged for land valued at $50,000.

2. Bonds payable (maturing in 2021) in the amount of $30,000 were retired by paying $28,000 cash.

3. Capital stock in the amount of $40,000 was issued at par value.

4. The company sold surplus equipment for $10,000. The equipment had a book value of $14,000 at the time of the sale.

5. Net income was $35,500.

6. Cash dividends of $5,000 were paid to the stockholders.

7. 100 shares of stock (considered short-term investments) were purchased for $8,300.

8. A new building was acquired through the issuance of $75,000 in bonds.

9. $12,000 of depreciation was recorded on the plant and equipment.

10. At December 31, 2017, Cash was $93,200, Accounts receivable had a balance of $41,500, Inventory had increased to $73,000, and Accounts payable had fallen to $25,500. Long-term investments and Taxes payable were unchanged from 2016.

Required -

1. What would a statement of cashflows look like?

2. What would the balance sheet for Kay Wing December 31, 2017 look like?