Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional information to prepare the Statement of Cash Flows for the month of January 2022. Use the indirect method to prepare the operating activities section Issued 20,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents. Purchased land with a cost $300,000. A down payment was made in the amount of $100,000 cash and a 10% 5- year note payable was signed for the difference. Purchased additional store equipment for $30,000 paying cash. The notes receivable were related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an item in the operating activities section of the statement of cash flows. Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section. Used the cash proceeds from the bond issue to pay off the mortgage payable of $210,000. The company repurchased 20,000 shares of its common stock on the open market for $9 per share. The company reissued 10,000 of the treasury shares at a price of $18 per share. Issued 1,500 shares of preferred stock at $105 per share. Paid cash dividends of $5,615 to preferred and common stockholders. 2 Assets Comparative Balance Sheet As of January 31 2022 Amount % Change Jan-31-2022 Dec-31-2021 Liabilities Amount (5) Jan-31-2022 Dec-31-2021 % Change 521,865 28.875 26.250 7 4704 4.76% 25,000 7.500 4,778 200.000 42,000 7,875 0 0 10 11 12 52.500 13 72.579 146 5096 57.14 364,500 601.778 412.500 115,000 Cash Accounts Recievable 24 150 Less: Allowance for Debts (4831 Interest Recievable Notes Recievable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurace Land Building Accumulated Depreciation (Building) Office Equipment Accumulated Depreciation (Office Equip) Store Equipment Accumulated Depreciation (Store Equip) Patents 210,000 244, 125 262,500 105,000 1.575 14 1707.319 Accounts Payable Income Tax Payable 43.6596 Interest Payable Notes (Long Term) Payable Bonds/Mortage Payable 375,000 89.629 Less. Discount (10.500) Total Liabilities -80.00% Preffered Stock -6.67% Common Stock 439.56Paid in Capital in Excess of Par 47.62% Preffered 1.809 Common 0% Retained Earnings 83,485 15.874 Add: Net Profit 267,212 38.109 Total Shareholders Equity 5.56% -0.99 124.5395 23,667 63 15.000 5.450 10.500 315 2,940 368.250 520,000 48,100 94,500 -18,250 108,750 -16,625 72,775 1,761,100 15 16 17 15,375 265,750 7.875 75,750 3.150 68,250 420,000 -47,250 94,500 -15,750 78,750 - 15,750 73,500 784,350 95.24% 250.63% 350,697 1,159,322 89.100 540,225 293.60 114.00 22 1.761,100 784,350 124.53 24