P1-4B

Presented below are selected financial items for Preacher Corporation for December 31, 2014.

Inventory $55,000, Cash paid to suppliers 154,000, Buildings 400,000, Common Stock 20,000, Cash dividends paid 2,000, Cash at beginning of period 11,000, Cash paid to purchase equipment $20,000, Equipment 40,000, Service revenue 200,000, Cash received from customers 162,000, Cash received from issuing bonds payable 40,000. Instructions (a) Determine which items should be included in a statement of cash flows, and prepare the statements for Preacher Corporation. (b) Comment on the adequacy of net cash provided by operating activities to fund the company's investing activities and dividend payment