Question

Lander Inc. had the following balance sheet on December 31, 2016:

LANDER, INC. Balance Sheet December 31, 2016
Cash	$49,830		Accounts payable	$37,180
Accounts receivable	$20,790		Bonds payable	$38,500
Investments	$27,500		Common stock	$209,000
Plant assets (net)	$85,800		Retained earnings	$20,240
Land	$121,000
Total Assets	$304,920		Total Liabilities & Equity	$304,920

During 2017 the following occurred:

Lander liquidated its investment portfolio at a loss of $7,150.

A tract of land was purchased for $34,100.

An additional $22,000 in common stock was issued at par.

Dividends totalling $5,500 were declared and paid to stockholders.

Net income for 2017 was $31,900, including $7,700 in depreciation expense.

Land was purchased through the issuance of $27,500 in additional bonds.

At December 31, 2017, Cash was $79,915, Accounts Receivable was $38,775, and Accounts Payable was $35,750.

Required:

Prepare the balance sheet as it would appear as of December 31, 2017.

Prepare a statement of cash flows for the year 2017 for Lander.

Answer 1