Problem:
Chekov Corporation's balance sheet at the end of 2009 included the following items.
Current assets $235,000
Land 30,000
Building 120,000
Equipment 90,000
Accum. Depr.-building (30,000)
Accum. Depr.-equipment (11,000)
Patents 40,000
Total $474,000
Current liabilities $150,000
Bonds payable 100,000
Common stock 180,000
Retained earnings 44,000
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.
Instructions:
(Show only totals of current assets and current liabilities)
a. Prepare a statement of cash flows for 2010.
b. Prepare a balance sheet at December 31, 2010.