Prepare the Statement of Cash Flows for the month of January 2019. The company has elected to use the indirect method to prepare the operating activities section.

• Issued 10,000 new shares of common stock in exchange for a piece of land. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents.
• Purchased land with a cost $250,000. A down payment was made in the amount of $50,000 cash and a 10% 5-year note payable was signed for the difference.
• Purchased additional store equipment for $50,000 paying cash.
• The $10,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported in the operating activities section of the statement of cash flows.
• Issued bonds with a face amount of $800,000 at 97. Hint: The amortization of the bond discount in the amount of $100 should be reported as an addition to the operating activities section.
• Used the cash proceeds from the bond issue to pay off the mortgage payable of $200,000.
• The company repurchased 20,000 shares of its common stock on the open market for $9 per share.
• The company reissued 12,000 of the treasury shares at a price of $15 per share.
• Issued 1,500 shares of preferred stock at $105 per share.
• Paid cash dividends of $31,060 to preferred and common stockholders.

Be Prepared Inc Income Statement For the month of January 2019 Sales Less: Sales discounts Sales returns and allowances Net sales Cost of good sold Gross profit Operating expenses Selling expenses Supply expense Salaries and wages expense Payroll tax Delivery expense Bad debt expense Total selling expenses General and administrative expenses Maintenance and repairs expense - office Maintenance and repairs expense - store Depreciation expense - building Depreciation expense - store equipment Depreciation expense - equipment Utility expense - office Utility expense - store Office salaries Payroll tax Amortisation expense Total general and administrative expenses Income from operations Other revenues and gains Interest revenue Other expenses and loses Interest expense - general Interest expense Net income $139,000 $800 3,000 3,800 135,200 84,560 50,640 1,200 10,000 800 1,000 460 13,460 2,500 800 750 800 2,500 1,500 1,100 15,000 1,200 700 26,850 10,330 60 200 5,878 $4,312 Be Prepared, Inc. Comparative Balance Sheet Assets Jan. 31, 2019Dec. 31, 2018 27,500 40,000 Cash Accounts receivable Interest receivable Notes receivable Merchandise inventory Store supply Office supply Prepaid insurance Land Building Accumulated depre. - Building Office equipment Accumulated depre. - Office equip Store equipment Accumulated depre. - Store equip Patents Total Assets 687,490 22,540 60 10,000 5,190 10,000 300 2,800 414,250 400,000 -45,750 90,000 -17,500 125,000 15,800 69,300 1,757,880 50,000 0 1,500 3,000 64,250 400,000 -45,000 90,000 15,000 75,000 15,000 70,000 746,250 Liabilities Accounts payable Income taxes payable Mortgage payable Interest payable Long term notes payable Bonds payable Discount on bonds payable Total Liabilities 25,000 7,500 0 4,778 200,000 800,000 -23,900 1,013,378 25,000 7,500 200,000 0 0 232,500 Stock Holders Equity Preferred stock Common stock Paid in capital in excess of par: Pre Paid in capital in excess of par: Co Paid in capital treasury stock Retained earnings Treasury stock Total Stock Holders Equity Total Liabilities and Stock Hold. Eq 400,000 105,000 15,000 166,250 72,000 58,252 72,000 744,502 1,757,880 250,000 100,000 7,500 71,250 85,000 0 513,750 746,250