The December 31, 2015, balance sheet and the 2016 statement of cash flows for Northtown, Inc., follow:

Requirement
1. Prepare the December 31, 2016, balance sheet for Northtown, Inc

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A1 Northtown, Inc. Balance Sheet December 31, 2015 2 Assets: 3 Cash 4Accounts receivable (net) 5Inventory 6 Prepaid expenses 7 Land 8 Machinery and equipment (net) 9otl assets 10 Liabilities: 11 Accounts payable 12 Unearned revenue 13 Income taxes payable 14 Long-term debt 15 Total liabilities 16 Stockholders' equity 171 Common stock,no par 18 Retained earnings 19 Total stockholders' equity 20 Total liabilities and stockholders' equit 21 14,000 95,000 60,500 2,600 99,800 73,600 $ 40,300 9,000 6,000 84100 139400 47,300 158,800 206,100 A1 Northtown, Inc. Statement of Cash Flows Year Ended December 31, 2016 2 Cash flows from operating activities: 3 Net income $15,600 Adjustments to reconcile net income to net cash provided by operating activities: $13,600 8,000 6,800) 6 Depreciation 7 Loss on sale of equipment 8 Gain on sale of land 9 Change in assets and liabilities 10 Decrease in Accounts receivable 11 Increase in Inventory 12 Increase in Prepaid expenses 13 Increase in Accounts payable 14 Decrease in Taxes payable 15 Increase in Unearned revenue 16 66,300 (17,90 1,300) 1,000 4,700) 15,000 73,200 $ 88,800 Net cash provided by operating acivities Cash flows from investing activities: 18 Purchase of equipment 19 Sale of equipment 20 Sale of land 21Net cash provided by investing activities 22 Cash flows from financing activities: 23 Repayment of long-term debt 24 Issuance of common stock 25 Dividends paid (dividends declared, $9,000) 26 Net cash provided by financing activities 27 Increase (decrease) in cas 28 Cash balance, December 31, 2015 29 Cash balance, December 31, 2016 30 28,000) 5,000 69,700 46,700 (15,000 22,000 3,000) 4,000 139,500 14,000 $153,500