=+Cash flows from investing activities:

Cash received from investments sold . . . . . . . . . . . . . . . . . . . . . $60,000 Less cash paid for purchase of store equipment . . . . . . . . . . . . . (40,000) _________ Net cash flow provided by investing activities . . . . . . . . . . . . . . . 20,000 Cash flows from financing activities:

Cash paid for dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42,000 _________ Net cash flow used for financing activities . . . . . . . . . . . . . . . . . . (42,000) _________ Increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 97,000 Cash at the beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . . 36,000 _________ Cash at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $133,000 _________ _________ Schedule of Noncash Financing and Investing Activities:

Issued common stock for land $ 80,000 After reviewing the statement, Walker telephoned you and commented, “Are you sure this statement is right?” Walker then raised the following questions: