Glenview s Corporations comparative balance sheets as of Dec31 ,yr. 1 and yr. 2 and its yr. 2 income statement is as follows: (20 marks) Assets Yr2 Yr1 Cash 82,400 25,000 Accounts Receivables 82,600 100,000 Inventory 175,000 225,000 Prepaid Expenses 1000 1500 Furniture and Fixtures 74,000 72,000 Accumulated Depreciation (21,000) (12,000) Total Assets 394,000 411,500 Liabilities and Stockholders Equity; Yr1 Yr. 2 Accounts payable 71,700 100,200 Notes Payable(long term) 20,000 10,000 Bonds Payable 50,000 100,000 Income tax Payable 700 2200 Common Stock-$10 par value 120,000 100,000 P a g e | 2 Financial Accounting 2. Paid in capital in excess of par value 90,720 60,720 Retained Earnings 40,880 38,380 Total Liabilities and Stockholders Equity 394,000 411,500 Income Statement For the Year Ended Dec 31, Yr. 2 Sales $804,500 Cost of goods Sold ( 563,900) Gross Profit 240,600 Operating Exp(Including depreciation Exp of 23,400) (224,700) Income from Operations 15,900 Gain on Disposal of Furniture and Fixtures 3500 Interest Expense (11,600) Income before Income taxes 7,800 Income Taxes 2300 Net Income 5,500 P a g e | 3 Financial Accounting 2. Additional information about yr2: a) Furniture and fixtures with book value of $3400 was sold at $6900. b) Furniture and fixtures were purchased in the amount of $19,800. c) A $10,000 note payable was paid and $20,000 was borrowed on a new note. d) Bonds payable in the amount of $50,000were converted into 2000 shares of common stock. e) A $3,000 in cash dividends were declared and paid.

Required: Prepare a statement of cash flows using the direct method and supporting schedule of non-cash investing and financing transactions.