Presented below are balance sheet items for Mattel Inc., for the current year, 2021.

Instructions: Prepare a classified balance sheet in good form. Common shares authorized were 1,000,000 shares, and preferred stock
authorized was 50,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of
equity investments (trading) are the same. 

BALANCE SHEET
For the year ended 2021
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                                                             Assets
Current Asets:
Cash                                                                                   61,500
Equity Investments (trading)                                        375,000
Notes receivable                                                            160,000
Income taxes receivable                                                 45,600
Inventory                                                                        398,600
Prepaid expenses                                                            68,760
Total Current Assets                                                                        1,109,460
Property,Plant and Equipment:
Land                                                                                  351,000
Buildings                                                2,800,000
Accumulated depreciation buildings     (361,200)  2,438,800  
Equipment                                              1,386,000
Accumulated depreciation equipment (467,000)      919,000
Total Property,Plant and Equipment                                              3,708,800
Intangible assets:
Goodwill                                                                                               211,000
TOTAL ASSETS                                                                               5,029,260

                                       Liabilities and Shareholders' Equity

Current Liabilities:
Accounts payable                                                          348,000
Notes payable (to banks)                                             264,900
Payroll taxes payable                                                      65,300
Rent payable (short-term)                                              40,000
Income tax payable                                                        110,800
Total Current Liabilities                                                                    829,000
Long term Liabilities: 
Unsecured notes payable (long-term)                     1,300,000 
Bonds payable                                          500,000
Less: Discount on bonds payable           (35,000)     465,000
Rent payable (long- term)                                               80,000
Total Long term Liabilities                                                             1,845,000   
Total Liabilities                                                                                2,674,000          
Shareholders' Equity
Capital stock:
Preferred stock, $25 par value                                 1,250,000
Common stock, $1 par value                                       250,000
Retained Earnings                                                         855,260
Total Shareholders' Equity                                                            2,355,260
Liabilities and Shareholders' Equity                                             5,029,260

Working notes:
Retained earnings in a balance sheet = total assets - total liabilities - common stock - preferred stock
                                                                  = 5,029,260 - 2,674,000 - 250,000 - 1,250,000
                                                                  = 855,260
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Problem #2: A comparative balance sheet for Motorola is presented below: 

Additional information: 
Net income for 2021 was $187,500. 
Cash dividends of $90,000 were declared and paid. 
Bonds payable amounting to $75,000 were retired through issuance of common stock. 
Land was sold for cost. 
Equipment was purchased but no equipment was sold. 
Instructions: Prepare a statement of cash flows for 2021. 

Motorola Corporation 
Statement of Cash Flows 
For the Year Ended December 31, 2021
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                                                                                                        Amount         Amount
Cash flows from operating activities:
Net income (given)                                                                                              187,500
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation expense (103,500 - 63,000)                                 40,500
Increase in accounts receivable (123,000 - 99,000)               -24,000
Decrease in inventory (283,500 - 270,000)                               13,500
Decrease in accounts payable (51,000 - 70,500)                     -19,500
Net cash provided by operating activities                                                          10,500

Cash flows from investing activities:

Sale of land (165,000 - 106,500)                                                58,500
Purchase of equipment (390,000 - 300,000)                          -90,000
Net cash used by investing activities                                                               -31,500

Cash flows from financing activities:

Payment of cash dividends                                                                               -90,000
Net increase in cash                                                                                            76,500
Cash at beginning of year                                                                                  33,000
Cash at end of year                                                                                            109,500
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Cash at end of year = Cash at beginning of year + Net increase in cash  

109,500 = 76,500 + 33,000
It is balanced.