Kay Wing, Inc., prepared the following balance sheet at December 31, 20X0.

Kay Wing, Inc.
Balance Sheet as of December 31, 20X0
Cash	$ 65,000
Accounts receivable	37,000
Inventory	70,000
Long-term investments	20,000
Land	39,000
Plant and equipment (net)	109,000
Total assets	$ 340,000
Accounts payable	$ 33,000
Taxes payable	4,000
Bonds payable	80,000
Capital stock	90,000
Retained earnings	133,000
Total liabilities and stockholders’ equity	$ 340,000

The following occurred during 20X1.

1. A $35,000 note payable was issued.

2. Land was purchased for $50,000.

3. Bonds payable (maturing in 20X5) in the amount of $30,000 were retired by paying $30,000 cash.

4. Capital stock in the amount of $40,000 was issued at par value.

5. The company sold surplus equipment for $14,000. The equipment had a book value of $14,000 at the time of the sale.

6. Net income was $35,500.

7. Cash dividends of $5,000 were paid to the stockholders.

8. 100 shares of stock of another company (considered short-term investments) were purchased for $8,300.

9. $75,000 in bonds were issued. The next day, the proceeds were used to purchase a new building.

10. $12,000 of depreciation was recorded on the plant and equipment.

11. At December 31, 20X1, Cash was $93,200, Accounts receivable had a balance of $41,500,

Inventory had increased to $73,000, and Accounts payable had fallen to $25,500. Longterm investments and Taxes payable were unchanged from 20X0.

Required:

1. Prepare a statement of cash flows for 20X1.

2. Prepare the December 31, 20X1, balance sheet for Kay Wing, Inc.