Question 7 The statement of retained earnings of Gary Larson Publishers is presented below. GARY LARSON PUBLISHERS Statement of Retained Earnings For the Year Ended December 31, 2016 (s in millions) Retained earnings, January 1 $200 Add: Net income 75 Deduct: Cash dividend (25) Stock dividend (1 million shares of $1 par common stock) (16) Property dividend (Garfield Company preferred stock held as a short-term investment) (12) Sale of treasury stock (cost $53 million) (10) Retained earnings, December 31 $212 Required: For the transactions that affected Larson's retained earnings, reconstruct the journal entries for the transactions that affected retained earnings and that can be used to determine cash flows to be reported in a statement of cash flows. Also indicate any investing and financing activities you identify from this analysis that should be reported on the statement of cash flows