Stickey Wicket, Inc.
December 31, 2003
Accounts Receivable $21,200
Investments (trading) $32,000
Plant Assets (net) $81,000
Accounts Payable $30,000
Long-Term Notes Payable $41,000
Capital Stock $100,000
Retained Earnings $23,200
a. 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.
b. A piece of land was purchased for $18,000 cash.
c. Long-term notes payable in the amount of the $16,000 were retired before maturity by paying $16,000 cash.
d. An additional $24,000 in capital stock was issued at par.
e. Dividends totaling $8,200 were declared and paid to stockholders.
f. Net income for 2004 was $32,000 after allowing for depreciation of $12,000.
g. Land was purchased through the issuance of $30,000 in bonds.
h. 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.© BrainMass Inc. brainmass.com March 4, 2021, 5:40 pm ad1c9bdddf
Balance sheet and statement of cash flow are prepared for Stickey Wicket, Inc.