The following are Adair Company’s December 31, 2018, post-closing trial balance and the December 31, 2019, adjusted trial balance:

A review of the accounting records reveals the following additional information for 2019:
• Investments in bonds to be held to maturity were purchased at year-end for $8,600.
• A building was purchased for $28,000.

• A note payable was issued for $9,000.
• Common stock was issued for $14,500.
• Dividends of $6,500 were declared and paid.

Required:
1. Using the direct method for operating cash flows, prepare a spreadsheet to support the 2019 statement of cash flows for Adair.
2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)

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12/31/18 Post-Closing Trial Balance 12/31/19 Adjusted Trial Balance Credit Debit Credit Debit Accounts Cash Accounts Receivable 2,700 7,300 8,100 10,000 105,300 3,300 6,200 9,900 18,600 133,300 Inventory Investments in Bonds Property and Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Notes Payable Common Stock, no par Retained Earnings Sales Cost of Goods Sold 42,400 8,100 1,300 49,200 8,500 700 300 9,000 58,100 31,500 89,000 43,600 38,000 48,800 6,800 Depreciation Expense Salaries Expense Other Operating Expenses 12,000 1,700 Interest Revenue 1,200 Interest Expense Income Tax Expense Totals 900 6,000 247,500 247,500 133,400 133,400