Please explain the accounts on the cash flow. Below is the given information. Data was entered into a worksheet.

You are the accountant for Senders Construction Company, a large construction company in Colorado. You have been presented with the following financial information for Spears and asked to prepare the Statement of Cash Flows for the year ended June 30, 2018.

1. Facts - Information taken from Senders' accounting records and additional information regarding the cash flows as of June 30, 2018.

2. Worksheet - Worksheet template (also see Example in chap 21 in textbook).

3. Cash Flows - Statement of Cash Flows template (also see Example in chap. 21 in textbook).

Account Balances June 30, 2017 June 30, 2018

Debits

Cash $397,520 $1,128,203

Accounts Receivable 110,000 162,500

Marketable Securities (at cost) 11,700 24,700

Allowance for Change in Value 1,500 2,800

Construction in Process 185,625 526,500

Prepaid Expenses 49,500 13,000

Investments (long-term) - 17,550

Leased Equipment - 26,000

Building 33,000 -

Deferred tax asset 5,913 2,860

Land 13,650 13,650

Totals 808,408 1,917,763 -

Credits

Allowance for doubtful accounts $6,600 $5,850

Accounts Payable 96,250 273,000

Deferred tax liability 1,100 4,290

Income Taxes Payable 3,850 11,700

Note Payable (long-term) 3,500 -

Accumulated Depreciation on Building 2,750 -

Accumulated Depreciation on Leased Asset - 3,900

Lease obligation - 23,400

Interest payable on lease obligation - 2,340

Bonds payable - 60,000

Premium on bonds payable - 1,140

Billings on construction in process 165,000 422,500

Pension liability 165,000 520,000

Convertible preferred stock, $100 par 9,000 -

Common Stock, $10 par 16,000 26,500

Additional Paid-in Capital 8,700 13,700

Unrealized Increase in Value of Marketable Securities 1,500 2,800

Retained Earnings 329,158 546,643

Totals 808,408 1,917,763

Additional information:

a. Dividends declared and paid totaled $1,500.

b. 300 shares common stock (at par) were issued for cash.

c. On July 1, 2017, convertible preferred stock that had originally been issued at par value were converted into 500 shares of common stock. The book value method was used to account for the conversion.

d. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the fiscal year.

e. Short-term marketable securities were purchased at a cost of $13,000. The portfolio was increased by $1,300 to a $27,500 fair value at year-end by adjusting the related allowance account.

f. During the year, a 25% interest in Ricochet Co. was purchased as an investment for $13,000. Ricochet reported $24,000 in net income for the year and paid dividends of $1,450 to Spears.

g. $4,800 of accounts receivable were written off as uncollectible during the year.

h. Senders' inventory consists of Construction-in-Process in excess of the Billings on Construction-in-Process account balance.

i. A building was destroyed by fire during the year and insurance proceeds of $36,000 were collected.

j. Ten-year, 10% bonds payable were sold on December 31, 2017, at 102, plus accrued interest. Discounts and premiums are amortized using the straight-line method. Interest is paid with cash semiannually.

k. Sender Company recorded pension expense of $470,000 for the year.

l. A lease agreement was signed on July 1st, 2017 for the use of equipment worth $26,000. The company determined that the transaction should be recorded as a capital lease.

I am particularly interested in better understanding the following line items on the statement of cash flows:

Gain on Sale of Building

Gain/Loss on Conversion of Preferred Stock

Gain/Loss on Repayment of Note Payable

Bond Premium Amortization

Change in Construction in Process

Dividend Received from Subsidiary

Increase in Pension Liability

Investments (long-term)

Common Stock Issued