Answer:
 Ending cash balance is -$41,000.
Explanation:
This can be prepared as follows:
Nathan Herrmann
Cash Flow Statement
for the year ended ...
<u>Details                                                                   $                      $             </u>
Net income                                                      69,000  
Adjustment to reconcile net income	    	
 Depreciation expense                                     13,000  
 Loss on sale of land                                         12,000  
(Increase) decrease in current assets	 
 Increase in inventory                                     (35,000)	
 Increase in prepaid rent                                  (7,500)	
 Increase in accounts receivable                   (47,000)	
Increase (decrease) in current liabilities:   
 Increase in accounts payable                      <u>    15,000  </u>
Net cash from operating activities                                          19,500 
<u>Cash flows from investing activities:  </u> 
 Cash received from the sale of land                7,500  
 Purchase of equipment                              <u> (229,000) </u>
Net cash flows from Investing activities                             (221,500)
<u>Cash flows from financing activities:   </u>
 Payment of dividends                                      (31,000)	
 Repayment of notes payable                         (49,000)	
 Issuance of common stock                            <u> 241,000  </u>
Net cash from financing activities                                        <u>  161,000  </u>
 Increase / (Decrease) in cash                                                   (41,000)
 Beginning cash balance                                                         <u>            -    </u>
 Ending cash balance                                                              <u>   (41,000) </u>