Balance Sheet – The following beginning balance sheet and statement of cash flows for 2007 are available for Fazzi Company:
Balance Sheet |
||
Cash |
$900 |
|
Accounts receivable |
2,300 |
|
Land |
4,900 |
|
Equipment |
$20,000 |
|
Less: Accumulated depreciation |
9,100 |
10,900 |
Total Assets |
$19,000 |
|
Accounts payable |
$1,600 |
|
Notes payable |
3,900 |
|
Common stock, $5 par |
4,500 |
|
Additional paid-in capital |
1,800 |
|
Retained earnings |
7,200 |
|
Total Liabilities and Stockholders’ Equity |
$19,000 |
Net Cash Flow From Operating Activities |
|
Net income |
$3,900 |
Adjustments for differences between income flows |
|
and cash flows from operating activities: |
|
Add: Depreciation expense |
900 |
Increase in accounts payable |
100 |
Less: Increase in accounts receivable |
700 |
Gain on sale of land |
200 |
Net cash provided by operating activities |
$4,000 |
Cash Flows From Investing Activities |
|
Payment for purchase of equipment |
($5,000) |
Proceeds from sale of land |
1,200 |
Net cash used for investing activities |
3,800 |
Cash Flows From Financing Activities |
|
Proceeds from issuance of common stock (200 shares) |
$2,600 |
Payment of long-term note |
900 |
Payment of dividends |
1,300 |
Net cash provided by financing activities |
400 |
Net Increase in Cash |
$600 |
Cash, January 1, 2007 |
900 |
Cash, December 31, 2007 |
$1,500 |
Required
On the basis of this information, prepare a balance sheet for the Fazzi Company as of December 31, 2007.