Grant Wood Corporation?s balance sheet at the end of 2019 included the following items.

The following information is available for 2020.

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 2020.

b. Prepare a balance sheet at December 31, 2020.

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Current liabilities Bonds payable Common stock Retained earnings Total Current assets (Cash $82,000) $235,000 $150,000 Land 100,000 30,000 180,000 44,000 Buildings Equipment Accum. depr.-buildings Accum. depr.-equipment Patents Total 120,000 90,000 (30,000) (11,000) 40,000 $474,000 $474,000