The statement of retained earnings of Gary Larson Publishers is presented below.

Required:For the transactions that affected Larson?s retained earnings, reconstruct the journal entries that can be used to determine cash flows to be reported in a statement of cash flows. Also indicate any investing and financing activities you identify from this analysis that should be reported on the statement of cash flows.

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GARY LARSON PUBLISHERS Statement of Retained Earnings For the Year Ended December 31, 2021 ($ in millions) Retained earnings, January 1 $200 75 Add: Net income Deduct: Cash dividend (25) Stock dividend (1 million shares of $1 par common stock) (16) Property dividend (Garfield Company preferred stock held as a short-term investment) (12) Sale of treasury stock (cost $53 million) (10) $212 Retained earnings, December 31