The following is a list of items for the 2007 statement of cash flows of the Witts Company: 1. Receipt from sale of equipment, $2,700 2. Increase in inventory, $3,900 3. Net income, $13,500 4. Payment for purchase of building, $29,000 5. Depreciation expense, $8,700 6. Receipt from issuance of bonds, $8,000 7. Increase in prepaid expenses, $800 8. Loss

Chapter 22, Exercises #4

The following is a list of items for the 2007 statement of cash flows of the Witts Company:

1. Receipt from sale of equipment, $2,700

2. Increase in inventory, $3,900

3. Net income, $13,500

4. Payment for purchase of building, $29,000

5. Depreciation expense, $8,700

6. Receipt from issuance of bonds, $8,000

7. Increase in prepaid expenses, $800

8. Loss on sale of equipment, $2,200

9. Payment of dividends, $5,200

10. Decrease in accounts receivable, $1,700

11. Issuance of common stock for land, $6,900

12. Decrease in accounts payable, $1,500

13. Beginning cash balance, $10,200

Required

Prepare the statement of cash flows.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...