Required
1.	Prepare a spreadsheet to support the statement of cash flows.
2.	Prepare Bott Company's 2019 statement of cash flows.

12/31/2018 12/31/2019 1,800 4,600 Debit balances Cash Accounts receivable Notes receivable (current portion) Inventory Prepaid items Land Building & equipment Patent Treasury stock (comm, at $25 per share cost) 12,000 1,700 11,000 78,000 4,400 2,500 116,000 2,000 4,720 1,000 9,700 1,380 17,100 110,000 4,000 1,000 150,900 24,000 6,000 2,600 1,400 Credit balances Accumulated depreciation Accounts payable Salaries payable Other current payables Interest payable 12% Bonds payable Premium on bonds Convertible preferred stock, 450 par Additional paid-in capital, preferred Common stock, $10 par Additional paid-in capital, common Retained earnings 31,800 8,210 3,500 1,200 140 7,000 650 6,500 2,500 23,500 41,150 24,750 150,900 9,000 3,000 18,000 28,800 23,200 116,000 Additional information: a. Beginning retained earnings, unadjusted Less prior period adjustment--correction of understated depreciation, net of tax Adjusted beginning retained earnings Net income Cash dividends Stock dividends (150 shares at $31 per share) Ending retained earnings 23,200 (1,300) 21,900 11,500 (4,000) (4,650) 24,750 1,800 500 30 7,750 7,000 460 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 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, 2024, and pay interest semiannually. The straight-line method is used to amortize bond premium. Interest epxense totaled $460 for 2015. e. Fifty share 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. 2,900 g. Three hundred shares of common stock were sold for $33 per share. 3,000 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. 1. The company loaned money to one of its executives and received a $1,000 short-term note receivable on December 31, 2018. The note matures 90 days from the dated of issuance. 3,000 3,800 9,900 32,000 9,000 6,000 400 1,000 12/31/2018 12/31/2019 1,800 4,600 Debit balances Cash Accounts receivable Notes receivable (current portion) Inventory Prepaid items Land Building & equipment Patent Treasury stock (comm, at $25 per share cost) 12,000 1,700 11,000 78,000 4,400 2,500 116,000 2,000 4,720 1,000 9,700 1,380 17,100 110,000 4,000 1,000 150,900 24,000 6,000 2,600 1,400 Credit balances Accumulated depreciation Accounts payable Salaries payable Other current payables Interest payable 12% Bonds payable Premium on bonds Convertible preferred stock, 450 par Additional paid-in capital, preferred Common stock, $10 par Additional paid-in capital, common Retained earnings 31,800 8,210 3,500 1,200 140 7,000 650 6,500 2,500 23,500 41,150 24,750 150,900 9,000 3,000 18,000 28,800 23,200 116,000 Additional information: a. Beginning retained earnings, unadjusted Less prior period adjustment--correction of understated depreciation, net of tax Adjusted beginning retained earnings Net income Cash dividends Stock dividends (150 shares at $31 per share) Ending retained earnings 23,200 (1,300) 21,900 11,500 (4,000) (4,650) 24,750 1,800 500 30 7,750 7,000 460 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 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, 2024, and pay interest semiannually. The straight-line method is used to amortize bond premium. Interest epxense totaled $460 for 2015. e. Fifty share 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. 2,900 g. Three hundred shares of common stock were sold for $33 per share. 3,000 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. 1. The company loaned money to one of its executives and received a $1,000 short-term note receivable on December 31, 2018. The note matures 90 days from the dated of issuance. 3,000 3,800 9,900 32,000 9,000 6,000 400 1,000