The bookkeeper of the Ryan Company prepared the following 2007 statement of cash flows:

After a thorough investigation, you have determined that the amounts of the items listed on the statement are correct. However, you notice several items that are incorrectly classified and reported.
Required
Prepare a corrected 2007 statement of cash flows for the RyanCompany.

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Flows of Cash Statement Sources (Inflows) of Cash Net Source from Operations Net income Add: Cash receipt from sale of land inflow from issuing 10% bonds payable Depreciation expense Reduction in inventory $ 47,800 6,500 25,000 13,200 1,900 (16,400) (700) (9,500 2,000) Less: Outflow to buy equipment Increase in prepaid expenses Cash (principal) paid on long-term note Extraordinary gain (net) Total source from operations $ 65,800 Other Sources (Inflows) of Cash Loss on sale of land Increase in accounts payable Cash from issuing preferred stock Patent amortization expense Total other sources of cash $ 2.300 1,000 38,700 2,100 44,100 Sources (Financing) Not Affecting Cash Issuance of common stock for patent Total inflows of cash 11,000 $120,900 Uses (Outflows) of Cash To purchase building Increase in accounts receivable For acquiring marketable securities Decrease in income taxes payable Total uses of cash (62,000) (7,800) (7,100) (1,400) (78,300) Uses (Investing) Not Affecting Cash (11,000) 31,600 (24,000) S 7,600 15,300 S 22,900 Acquisition of patent by issuing common stock Net inflow before dividends Less: Cash dividends Net Increase in Cash Cash. January 1, 2007 Cash, December 31, 2007