12. Statement of Cash Flows The following is a list of items for Witts Company's 2016 statement of cash flows: a. receipt from sale of equipment, $2,700 b. increase in inventory, $3,900 c. net income, $13,500 d. payment for purchase of building, $29,000 e. depreciation expense, $8,700 receipt from issuance of bonds, $8,000 g. Increase in prepaid expenses, $800 h. loss on sale of equipment, $2,200 i. payment of dividends, $5,200 j. decrease in accounts receivable, $1,700 k. issuance of common stock for land, $6,900 I. decrease in aocounts payable, $1,500 m. beginning cash balance, $10,200 Required: 1. Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. WITTS COMPANY Statement of Cash Flows For Year Ended December 31, 2016 Operating Activities: Net income Adjustment for noncash income items: Add: Depreciation expense Add: Loss on sale of equipment Adjustments for cash flow effects from working capital items: Decrease in accounts receivable