P1-4B Presented below are selected financial statement items for Preacher Corporation for December 31, 2014.

Inventory $55,000

Cash paid to purchase equipment $20,000

Cash paid to suppliers 154,000

Equipment 40,000

Buildings 400,000

Servicerevenue 200,000

Common stock 20,000 Cash dividends paid 2,000 Cash at beginning of period 11,000

Cash received from customers 162,000

Cash received from issuing bonds payable 40,000

1. (a) Determine which items should be included in a statement of cash flows, and then prepare the statement for Preacher Corporation.

2. (b) Comment on the adequacy of net cash provided by operating activities to fund the companys investing activities and dividend payments.