Question 1: 40 points The balance sheets for Air Jordan Company is shown below. Additional information concerning transactions and events during 2040 are presented below. Air Jordan Company Balance Sheet December 31 2040 2039 Cash $ 42,350 $ 10,200 Accounts receivable (net) 43,300 20,300 Inventory 52,700 42,000 Long-term investments 0 15,000 Property, plant & equipment 236,500 150,000 Accumulated depreciation (37,700) (25,000 $337,150 $212 500 Accounts payable $ 13,250 $ 26,500 Accrued liabilities 28,900 17,000 Line of Credit 25,000 Long-term notes payable 70,000 50,000 Common stock 130,000 90,000 Retained earnings 70.000 29.000 $308.000 $212.500 Additional data: 1. Net income for the year 2040, $71,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $50,000 (assume gain or loss is ordinary). 4. Paid dividends of $30,000. 5. Purchased machinery costing $26,500, paid cash. 6. Purchased machinery and gave a $60,000 long-term note payable. Instructions Fill in the blanks to complete the Statement of Cash Flows: Air Jordan Company Statement of Cash Flows For the Year Ended December 31, 2040 Increase (Decrease) in Cash Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided (used) by operating activities Cash flows from investing activities Net cash provided (used) by investing activities Cash flows from financing activities Net cash provided (used) by financing activities Net increase (decrease) in cash Cash, January 1, 2040 Cash, December 31, 2040 Noncash investing and financing activities $