Statement Preparation-Cash Basis. Following is a list of items that occurred during 1999 in the Harrol Company.

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1. Prepare a statement of cash flows for 1999 using the items given. The treasurer of the Harrol Company indicates that cash increased by \(\$ 102,000\).
2. Comment on the major causes of the cash balance increase.

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Net income for the year Dividends paid during the year Proceeds from sale of a 10-year bond issue Amortization of patents. Depreciation expense. Cash received on sale of land Decrease in inventory. Increase in accounts receivable Loss on the sale of land increase in accrued expenses Cash purchase of new equipment Cash purchase of a long-term investment Decrease in income taxes payable Increase in accounts payable Purchase of buildings by issuing 20-year notes a $ 356,000 75,000 200,000 15,000 125,000 130,000 44,000 96,000 20,000 18,000 500,000 158,000 24,000 47,000 300,000