FINANCE-Mr. Wizard’s Magic Shoppe had the following condensed balance sheet

QUESTION

27) Mr. Wizard’s Magic Shoppe had the following condensed balance sheet at the end of operation for 2010:Mr. Wizard’s Magic ShoppeBalance SheetDecember 31, 2010Cash$40,000Current Liabilities$35,000Other current assets60,000Long-term Notes Payable40,000Total current assets$100,000Bonds Payable50,000Investments$25,000Capital Stock150,000Fixed assets (net)110,000Retained earnings80,000Land$120,000Total assets$355,000Total Liabilities and Equity$355,000During 2011, the following occurreda. 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, 2011.28) Given the information below, calculate the company’s cash balance at the end of the year.Cash Balance at Beginning of Year$80,000Activity During the YearIncrease in Accounts Payable$60,000Decrease in Accounts Receivable$40,000Depreciation Expense$500,000Net Income$2,000,000Purchase of Fixed Assets$800,000Sales of Common Stock$100,000Decrease in Notes Payable$85,000Dividends Paid$15,000

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