Frank Worldwide Inc. had the balance sheet shown below at December 31, 2013.

FRANK WORLDWIDE INC.

BALANCE SHEET DECEMBER 31, 2013

CURRENT ASSETS

Cash                                 $ 31,000

Accounts receivable            56,800

FIXED ASSETS

Investments                       86,000

Land                                  138,500

Plant assets (net)                66,000

Total Assets                   $ 378,300

CURRENT LIABILITIES

Accounts payable                 $ 61,000

LONG-TERM DEBT

Notes payable (long-term)      76,000

SHAREHOLDER EQUITY

Common stock                       200,000

Retained earnings                  41,300

Total Liabilities & Equity    $ 378,300

During 2014, the following occurred.

Frank Worldwide Inc. sold part of its investment portfolio for $20,000.This transaction resulted in a loss of $2,100 for the firm. This investment is classified as available-for-sale.

2.   A tract of land was purchased for $25,000 cash.

3.   Long-term notes payable in the amount of $30,000 were retired before maturity by paying 30,000 cash.

4.   An additional $43,000 in common stock was issued at par.

5.   Dividends of $20,000 were declared and paid to stockholders.

6.   Net income for 2014 was $21,000 after allowing for depreciation of $9,000.

7.   Land was purchased through the issuance of $61,000 in notes payable.

8.   At December 31, 2014, Cash was $46,100, Accounts Receivable was $61,800, and Accounts Payable remained at $61,000.

Instructions

(a)   Prepare a statement of cash flows for 2014 by the indirect method.

(b)   Prepare a classified balance sheet as it would appear at December 31, 2014.