Terra Company just completed its first year of operations. The company€™s income statement and statement of cash flows are provided on the following page.

The following information is also available:
(a) Equipment with an original cost of $21,000 and a book value of $17,000 was sold during the year.
(b) All sales of inventory are on account.
(c) Purchases of inventory on account totaled $92,000.
Instructions:
Prepare a balance sheet for Terra Company as of December31.

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Income Statement $140,000 2,000 (86,000) (16,000) (8,400) (34.000) Gain on sale of equipment Cost of goods sold Interest expense Other expenses Net income (loss) Statement of Cash Flows Operating Activities Collected from customers Paid for inventory Paid for interest Paid for other expenses 132000 (87,000) (7,000) 000) 8,000 Investing Activities Purchase of buildings and equipment Sale of equipment $(175,000) 19.000 (156,000) Financing Activities $ 100,000 Sale of stock ssuance of bonds Payment of dividends 8,000 (4.000) 184,000 36,000 Net increase in cash for the period