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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000

Accounts receivable. . . . . . . . . . . . . . . . . . 120,000

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 130,000

Property, plant, and equipment . . . . . . . . . 550,000

Other noncurrent investments . . . . . . . . . . 200,000

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,100,000

Credit balances

Accounts payable. . . . . . . . . . . . . . . . . . $ 100,000

Current portion of long-term debt. . . . . . . . 80,000

Accumulated depreciation. . . . . . . . . . . . . 270,000

Long-term debt . . . . . . . . . . . . . . . . . . . . . 200,000

Common stock. . . . . . . . . . . . . . . . . . . . . . 300,000

Retained earnings. . . . . . . . . . . . . . . . . . . 150,000

Total. . . . . . . . . . . . . . . . . . . . . . . . . . . $1,100,000

BIRD CORPORATION

Statement of Cash Flows

For Year Ended December 31, Year 1

Required:
Using the available data and information, prepare the balance sheet of Bird Corporation as of
January 1, Year 1. T-accounts can be helpful in reconstructing the individual accounts. (Equipment sold had accumulated depreciation of$50,000.)

Cash flows from operations $150,000 Net income Add (deduct) adjustment to cash basis 85,000 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 5,000 (50,000) (30,000) (20,000) 40,000 30,000 180,000 Cash flows from investing activities Additions to property and equipment. . . Sale of equipment Sale of investments (150,000) 10,000 95,000 Cash used for investing activities (45,000) Cash flows from financing activities 10,000 Issuance of common stock. Additions to long-term debt. . . . . Decrease in current portion of long-term debt Cash dividends Cash used for financing activities $15,000 (30,000) (15,000) (80,000) (85,000) 50,000 Net increase in cash