Mr$.$ Wizard's Magic Shoppe

Balance Sheet

December $31,2010$

Cash $$40,000$ Current Liabilities $$35,000$

Other current assets $60,000$ Long$-$term Notes Payable $40,000$

Total current assets $$100,000$ Bonds Payable $50,000$

Investments $$25,000$ Capital Stock $150,000$

Fixed assets $($net$)110,000$ Retained earnings $80,000$

Land $$120,000$

Total assets $$355,000$ Total Liabilities and Equity $$355,000$

During $2011,$ the following occurred

a$.$ Mr$.$ Wizard's sold some of its investments for $$13,000$ which resulted in a gain of

$$300$ after taxes. The gain $($net of taxes$)$ has been included in the company's $2011$ net income.

b$.$ Additional land for a plant expansion was purchased for $$25,000.$

c$.$ Bonds payable were paid in the amount of $$10,000.$

d$.$ An additional $$35,000$ in capital stock was issued.

e$.$ Dividends of $$15,000$ were paid to stockholders.

f$.$ Net income for $2011$ was $$48,000$ after allowing for $$15,000$ in depreciation.

g$.$ A second parcel of land was purchased through the issuance of $$10,000$ in bonds,

and $$5,000$ in long$-$term notes payable.

Required:

a$.$ Prepare a statement of cash flows for the year ended $12/31/2011.$

$($check figure: ending cash balance $=$ $$72,500)$

b$.$ Prepare a condensed balance sheet for Mr$.$ Wizard's at December $31,2011.$