A. Balance Statement

PROBLEM 7-8 While on assignment you discover that you have misplaced the balance sheet of Bird Corporation as of January 1, Year 1. However, you do have the following data on Bird Corporation: BIRD CORPORATION Postclosing Trial Balance December 31, Year 1 Debit balances Cash .... Accounts receivable.. Inventory Property, plant, and equipment... Other noncurrent investments Total ..... Credit balances Accounts payable.. Current portion of long-term debt. Accumulated depreciation .. Long-term debt .. Common stock .. Retained earnings Total... 125,000 150,000 162,500 687,500 250,000 $1,375,000 125,000 100,000 337,500 250,000 375,000 187,500 $1,375,000 $ 187,500 106,250 6,250 -62,500 -37,500 -25,000 50,000 BIRD CORPORATION Statement of Cash Flows For Year Ended December 31, Year 1 Cash flows from operations Net income... Add (deduct) adjustment to cash basis Depreciation .. Loss on sale of equipment. . Gain on sale of noncurrent investments . Increase in accounts receivable. Increase in inventories. Increase in accounts payable Cash from operations Cash flows from investing activities Additions to property and equipment. Sale of equipment Sale of investments. Cash used for investing activities Cash flows from financing activities Issuance of common stock. Additions to long-term debt. Decrease in current portion of long-term debt .... Cash dividends .... Cash used for financing activities. . Net increase in cash. 37,500 $ 225,000 -187,500 12,500 118,750 -56,250 12,500 18,750 -37,500 -18,750 -100,000 -106,250 $ 62,500