Grant Wood Corporations balance sheet at the end of 2013 included the following items. The following information

Grant Wood Corporation’s balance sheet at the end of 2013 included the following items.

The following information is available for 2014.
1. Net income was $55,000.
2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $10,000.
3. Depreciation expense was $4,000 on the building and $9,000 on equipment.
4. Patent amortization was $2,500.
5. Current assets other than cash increased by $29,000. Current liabilities increased by $13,000.
6. An addition to the building was completed at a cost of $27,000.
7. A long-term investment in stock was purchased for $16,000.
8. Bonds payable of $50,000 were issued.
9. Cash dividends of $30,000 were declared and paid.
10. Treasury stock was purchased at a cost of $11,000.

Instructions
(Show only totals for current assets and current liabilities.)
(a) Prepare a statement of cash flows for 2014.
(b) Prepare a balance sheet at December 31,2014.

Transcribed Image Text:

$235,000 30,000 120,000 90,000 (30,000) (11,000) 40,000 $474,000 Current assets $150,000 Buildings Equipment Accum. depr.-buildings Accum. depr.-equipment Patents Current liabilities Bonds payable Common stock Retained earnings Total 180,000 44,000 $474,000 Total