The following information is available for Bott Company:

Additional information for the year:

a.

b. Last year, depreciation expense was inadvertently understated in the amount of $1,800. The correction was made this year to Accumulated Depreciation and to Retained Earnings as a prior period adjustment. The company also received a related income tax refund of $500.
c. Sixty shares of treasury stock (common) were reissued at $30 per share.

d. Bonds payable with a face amount of $7,000 were issued for $7,750 on April 30, 2019. The bonds mature on April 30, 2021, and pay interest semiannually. The straight-line method is used to amortize the bond premium. Interest expense totaled $460 for 2019.
e. Fifty shares of preferred stock (originally issued at $60 per share) were converted into 100 shares of common stock.
f. Land costing $2,900 was sold for $3,800.
g. Three hundred shares of common stock were sold for $33 per share.
h. Equipment costing $32,000 was purchased during the year.
i. Land was acquired at a cost of $9,000 during the year.
j. Depreciation expense was $6,000.
k. Patent amortization was $400.
l. The company loaned money to one of its executives and received a $1,000 short-term note receivable on December 31, 2019. The note matures 90 days from the date of issuance.

Required:
1. Prepare a spreadsheet to support a statement of cash flows for 2019.
2. Prepare Bott Company’s 2019 statement of cash flows. Show the reconciliation of the net income to the net cash provided by operating activities in a separate schedule accompanying the statement.

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Account Balances December 31, December 31, 2018 2019 Debits $ 1,800 4,600 $ 2,000 4,720 1,000 9,700 1,380 17,100 110,000 4,000 Cash Accounts Receivable Notes Receivable (short-term) 12,000 1,700 11,000 78,000 4,400 Inventories Prepaid Items Land Buildings and Equipment Patent Treasury Stock (common, at cost, $25 per share) Totals 2,500 $116,000 1,000 $150,900 Credits Accumulated Depreciation Accounts Payable Salaries Payable Miscellaneous Current Payables Interest Payable 12% Bonds Payable Premium on Bonds Payable Convertible Preferred Stock, $50 par Additional Paid-in Capital on Preferred Stock Common Stock, $10 par Additional Paid-in Capital on Common Stock Retained Earnings Totals $ 24,000 6,000 2,600 1,400 $ 31,800 8,210 3,500 1,200 140 7,000 650 9,000 3,000 18,000 28,800 23,200 $116,000 6,500 2,500 23,500 41,150 24,750 $150,900 Beginning retained earnings, unadjusted Less: Prior period adjustment-correction of understatement of depreciation (net of income taxes) Adjusted beginning retained earnings Add: Net income $23,200 (1,300) $21,900 11,500 $33,400 Less: Cash dividends Stock dividends (150 shares at $31 per share) Ending retained earnings $14,000) (4,650) (8,650) $24,750