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) Basha Company Income Statement For the year ended December 31, 2019 Sales $70,000 Cost of goods sold 40,000 Gross margin 30,000 Depreciation expense 5,000

) Basha Company

Income Statement

For the year ended December 31, 2019

Sales

$70,000

Cost of goods sold

40,000

Gross margin

30,000

Depreciation expense

5,000

Other operating expenses

15,000

Operating income

10,000

Loss on sale of equipment

4,000

Income before taxes

6,000

Income tax expense

2,400

Net income

$3,600

Additional data on activities during 2019 are as follows:

During 2019, Basha Company sold used equipment for $3,000 that had cost $15,000 with accumulated depreciation of $8,000.

New equipment was purchased for $12,000 cash.

Cash dividends totaling $8,000 were paid.

Long-term investments that had cost $18,000 when purchased were sold for $18,000.

Common stock was issued for $10,000.

Required:

Prepare the financing activities section of the statement of cash flows.

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