Problem:
Lander Inc. had the following balance sheet at December 31, 2008: LANDER, INC. Balance Sheet December 31, 2008 Cash $45,300 Accounts payable $33,800 Accounts receivable $18,900 Bonds payable $35,000 Investments $25,000 Common stock $190,000 Plant assets (net) $78,000 Retained earnings $18,400 Land $110,000 Total Assets $277,200 Total Liabilities & Equity $277,200 During 2009 the following occurred. Lander liquidated its available-for-sale investment portfolio at a loss of $6,500. A tract of land was purchased for $31,000. An additional $20,000 in common stock was issued at par. Dividends totaling $5,000 were declared and paid to stockholders. Net income for 2009 was $29,000, including $7,000 in depreciation expense. Land was purchased through the issuance of $25,000 in additional bonds. At December 31, 009, Cash was $72,650, Accounts Receivable was $35,250, and Accounts Payable was $32,500.
Required:
Question 1: Prepare the balance sheet as it would appear at December 31, 2009.
Question 2: Prepare a statement of cash flows for the year 2009 for Lander.
Prepare a statement of cash flows for the year 2009 for Lander.