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    Balance sheet, statement of cash flow for Stickey Wicket

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    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

    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.

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    Solution Summary

    Balance sheet and statement of cash flow are prepared for Stickey Wicket, Inc.