4. Given the following information: Sales $242807 Gain on sale of availa

4. Given the following information:

Sales $242807

Gain on sale of available for sale $2400

Equity in earnings of 30% owned company $5880

Gain on sale of land $10700

Total $261787

Cost of Sales $138407

General and Admin expenses $25010

Depreciation $1250

Interest expense $1150

Income taxes $34952

Net Income $61018

The following data presents the difference between last year and the current year balances.

Cash $21100

Available for sale securities $(9200)

Accts Rec. $25000

Allow for uncollectible accounts $ 0

Inventory $17500

Investment in 30% owned company $5880

Land $(21300)

Building $ 0

Equipment $81500

Less Accum Depreciation $(1250)

Total Assets $119230

Accounts Payable $(3890)

Income taxes payable $4616

Bonds payable $65000

Less Unamortized discount $150

Deferred tax liability $336

Preferred stock $(30000)

Common stock $30000

Retained earnings $53018

Total Liabilities and equity $119230

Additional Information:

a. On Jan. 8 the company sold marketable equity securities for cash. The original cost of the securities is $9200.

b. Only July 17th 3 acres of land were sold for cash of $32000.

c. On Sept. 3 the company purchased equipment for cash.

d. On Nov. 10 bonds payable were issued by the company at par for cash.

e. On Dec. 15 the company declared and paid an $8000 dividend to common stockholders.

f. General and Administrative expenses include $3000 of bad debt expense.

f. No dividends were received during the year from the 30% owned investee.

h. The company%u2019s preferred stock is convertible into common stock at a rate of one share of preferred stock for two shares of common stock. The preferred
stock and common stock have par values of $2 and $1 respectively.

i. For purposes of the statement of cash flows the company considers all highly liquid debt instruments purchased with a maturity of three months or less to
be cash equivalents.

Required:

a. Prepare a Statement of Cash Flows in good form using the above information and the indirect method.

b. Prepare the Net Cash Provided by Operating Activities section using the above information using the direct method.