Presented below are selected financial statement items for Rowe Corporation for December 31, 2012.

Inventory $ 55,000 Cash paid to purchase equipment $ 30,000 Cash paid to suppliers 154,000 Equipment 40,000 Buildings 400,000 Revenues 200,000 Common stock 20,000 Cash received from customers 172,000 Cash dividends paid 6,000 Cash received from issuing bonds payable 40,000 Instructions

(a) Determine which items should be included in a statement of cash flows, and then prepare the statement for Rowe Corporation.

(b) Comment on the adequacy of net cash provided by operating activities to fund the company’s investing activities and dividend payments.