Balance Sheet – The following beginning balance sheet and statement of cash flows for 2007 are available for Fazzi Company:

Balance Sheet
January 1, 2007

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.