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.