Use the statement of cash flows started in Application Problem 18-2. The comparative balance sheet of Flexcor Corporation lists the following long-term liability and its ending balance for the current and prior years.

The comparative statement of stockholders’ equity of Flexcor Corporation reveals the following stock and dividend information for the current year.

Instructions:
1. For the long-term liability, record the amount of increase or decrease from the prior year. Indicate if the increase or decrease represents a source of cash or a use of cash.
2. For each amount taken from the comparative statement of stockholders’ equity, record the appropriate amount. Indicate if these activities represent a source of cash or use of cash.
3. Using the statement of cash flows started in Application Problem 18-2, prepare the cash flows from financing activities section of the statement of cash flows.
4. Compute the net increase or decrease resulting from operating, investing, and financing activities.
5. Record the cash balance for the beginning of the period in the form provided. Flexcor started the year with a beginning cash balance of \($67,930.00.\)
6. Compute the cash balance for the end of the fiscal period by adding the amount of increase or decrease in cash and the beginning cash amount.
7. Complete the statement of cash flows for Flexcor Corporation by entering the net increase or decrease in cash, the beginning cash balance, and the ending cash balance.
8. Verify the accuracy of the statement of cash flows by comparing the statements ending cash balance with the cash balance of \($156,763.00\) listed for the current year on Flexcor’s comparative balance sheet.

Data from Application Problem 18-2,

The following information was taken from the financial statements of Flexcor Corporation on December 31 of the current year. The comparative income statement of Flexcor Corporation reveals the following net income and depreciation expense for the current year.

The comparative balance sheet of Flexcor Corporation lists the following current assets and current liabilities and their ending balances for the current and prior years.

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Mortgage payable Current Year $80,100.00 Prior Year $92,000.00