Problem
Kingbird Inc. had the following balance sheet at December 31, 2016.
|
KINGBIRD INC.
BALANCE SHEET
DECEMBER 31, 2016
|
|
Cash
|
$ 21,940
|
Accounts payable
|
$ 31,940
|
|
Accounts receivable
|
23,140
|
Bonds payable
|
42,940
|
|
Investments
|
32,000
|
Common stock
|
101,940
|
|
Plant assets (net)
|
82,940
|
Retained earnings
|
25,140
|
|
Land
|
41,940
|
|
$201,960
|
| |
$201,960
|
|
|
During 2017, the following occurred.
1. Kingbird liquidated its available-for-sale investment portfolio at a loss of $6,940.
2. A tract of land was purchased for $39,940.
3. An additional $30,000 in common stock was issued at par.
4. Dividends totaling $11,940 were declared and paid to stockholders.
5. Net income for 2017 was $36,940, including $13,940 in depreciation expense.
6. Land was purchased through the issuance of $31,940 in additional bonds.
7. At December 31, 2017, Cash was $72,140, Accounts Receivable was $43,940, and Accounts Payable was $41,940.
(a) Prepare a statement of cash flows for the year 2017 for Kingbird.