Problem:
Stickey Wicket, Inc.
Balance Sheet
December 31, 2003
Cash $20,000
Accounts Receivable $21,200
Investments (trading) $32,000
Plant Assets (net) $81,000
Land $40,000
Total $194,200
Accounts Payable $30,000
Long-Term Notes Payable $41,000
Capital Stock $100,000
Retained Earnings $23,200
Total $194,200
1) Stickey Wicket, Inc. sold part of its investment portfolio for $17,000. This transaction resulted in a gain of $3,400 for the company. The company often sells and buys securities of this nature.
2) A piece of land was purchased for $18,000 cash.
3) Long-term notes payable in the amount of the $16,000 were retired before maturity by paying $16,000 cash.
4) An additional $24,000 in capital stock was issued at par.
5) Dividends totaling $8,200 were declared and paid to stockholders.
6) Net income for 2004 was $32,000 after allowing for depreciation of $12,000.
7) Land was purchased through the issuance of $30,000 in bonds.
8) At December 31, 2004, Cash was $39,000, Accounts Receivable was $41,600, and Accounts Payable remained at $30,000.
Prepare the balance sheet as it would appear at December 31, 2004
Prepare a statement of cash flows for 2004.