Part 1: The balance sheet data of Franks Bike Shop, Inc. at December 31 is as follows:

2020 2019 Cash $ 7,500 $ 10,000 Accounts receivable (net) 82,000 87,500 Merchandise inventory 86,000 81,000 Prepaid expenses 9,000 12,000 Equipment 170,000 145,000 Accumulated depreciation equipment (45,000) (36,000) Land 30,000 50,000 $339,500 $349,500 Accounts payable $ 44,500 $ 58,000 Accrued liabilities 11,000 9,000 Notes payable bank, short-term 0 50,000 Bonds payable 20,000 0 Common stock, $1 par 181,000 160,000 Retained earnings 83,000 72,500 $339,500 $349,500

Additional data: a. Equipment was purchased for $21,000 in exchange for common stock, par $21,000, during the year; all other equipment was purchased for cash. b. Land was sold for $31,500. c. Cash dividends of $7,000 were declared and paid during the year. Required: Prepare a statement of cash flows in good form.

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Part 2: The following information was taken from the accounting records of the Magnificent Company:

Balance at 12/31/20

Balance at 12/31/19 Cash $96,200 $30,000 Accounts receivable, net 28,000 45,000 Inventory 85,000 75,000 Prepaid expenses 4,000 3,000 Equipment 90,000 75,000 Accumulated depreciation equipment

(46,000) (30,000) Buildings 100,000 100,000 Accumulated depreciation buildings (30,000) (25,000) Land 200,000 200,000 Intangible assets 18,000 20,000 Total assets $545,200 $493,000 Accounts payable $765 $25,000 Salaries payable 7,000 6,000 Income taxes payable 8,000 10,000 Notes payable 25,000 -0- Bonds payable 50,000 50,000 Common stock 105,000 100,000 APIC common stock 230,000 200,000 Retained earnings 119,435 102,000 Total liabilities and equity $545,200 $493,000

The following additional information was also provided: Cash dividends of $7,000 were declared and paid. 1,000 shares of $5 par value common stock were sold for $35 per share. Equipment costing $25,000 was purchased by the issuance of a note payable. Equipment costing $10,000 (with a net book value of $2,000) was sold for $1,000. Fixed assets were depreciated and intangible assets were properly amortized. Required Prepare a statement of cash flows in good form.