Additional Information for Year $2$

$1.$ On January $2,$ Year $2,$ Final Exam Company sold Equipment costing $$90,000$ with a carrying amount of $$48,000$ for $$38,000$ cash.

$2.$ On July $1,$ Year $2,$ Final Exam Company acquired Equipment for cash

$3.$ On December $31,$ Year $2,$ Land was acquire through the issuance of a long$-$term promissory note.

$4.$ Interest Expense was in the form of cash.

$5.$ Income Taxes were paid.

$6.2,000$ shares of Common Stock were issued for $$46,000$ cash on April $16,$ Year $2.$

$7.$ Convertible Bonds were exchanged for $4,000$ shares of Common Stock.

$8.$ The Company re$-$issued the Treasury Stock for $$50,000$ cash.

$9.$ Cash Dividends were paid.

Requirements:

a$.$ Prepare a Statement of Cash Flow $($in good form$)$ using the Direct Method.

Check Figures:

operating $ $268,000$

investing $ $(88,000)$

financing $$10,000$

b$.$ List the $2$ Exchange Transaction involved in this problem.

c$.$ Prepare the Reconciliation of Net Income to Net Cash Flow from Operating Activities $($there are $8$ reconciling items$).$