Prepare a cash flow worksheet and a statement of cash flows for Bob's Construction Company using the following information. A. Dividends declared and paid totaled $650. B. 300 shares of 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 $1,300. The portfolio was increased by $300 to a $14,800 fair value at year-end by adjusting the related allowance account. F. During the year, a 30% interest in Ricochet Co. was purchased as an investment for $9,500. Ricochet reported $20,000 in net income for the year and paid dividends of $2,000. G. $5,000 of accounts receivable were written off as uncollectible during the year. H. Construction Company Xs 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 $26,000 were collected. J. The 12% bonds payable were issued on February 28, 2018, at 97. They mature on February 28, 2028. The company uses the straight-line method to amortize bond premiums and discounts. K. Construction Company X recorded pension expense of $350,000 for the year. L. A lease agreement was signed on July 1st, 2017 for the use of equipment worth $20,000. The company determined that the transaction should be recorded as a capital lease.

	Account Balances
	June 30, 2017	June 30, 2018
Debits
Cash	361,700	880,550
Accounts Receivable	100,000	125,000
Marketable Securities (at cost)	11,700	13,000
Allowance for Change in Value	1,500	1,800
Construction in Process	168,750	405,000
Prepaid Expenses	45,000	10,000
Investments (long-term)	0	13,500
Leased Equipment	0	20,000
Building	30,000	0
Deferred tax asset	5,375	2,200
Land	10,500	10,500
Discount on Bonds Payable	0	1,305
Totals	734,525	1,482,855
Credits
Allowance for doubtful accounts	6,000	4,500
Accounts Payable	87,500	210,000
Deferred tax liability	1,000	3,300
Income Taxes Payable	3,500	9,000
Note Payable (long-term)	3,500	0
Accumulated Depreciation on Building	2,500	0
Accumulated Depreciation on Leased Asset	0	3,000
Lease obligation	0	18,000
Interest payable on lease obligation	0	1,800
Interest payable (Bonds)	0	1,800
Bonds payable	0	45,000
Billings on contruction in process	150,000	325,000
Pension liability	150,000	400,000
Convertible preferred stock, $100 par	9,000	0
Common Stock, $10 par	14,000	24,500
Additional Paid-in Capital	8,700	13,700
Unrealized Increase in Value of Marketable Securities	1,500	1,800
Retained Earnings	297,325	421,455
Totals	734,525	1,482,855