Question

Hagag Company uses the indirect method to prepare its statement of cash flows. Please refer to the following sections of the companys comparative balance sheet and complete the fourth column to show the increase or decrease for each item listed. Please use the correct sign for each item to gain the full mark assigned (for example if the figure is negative, this must be clearly stated with brackets or with the minus sign):

	2014	2013	Increase/decrease
Accounts payable	$ 4,000	$ 6,000
Accrued liabilities	2,000	1,000
Long-term notes payable	84,000	90,000
Total liabilities	$ 90,000	$ 97,000
Common stock	30,000	2,000
Retained earnings	113,000	74,000
Treasury stock	(8,000)	(5,000)
Total equity	$135,000	$ 71,000
Total liabilities and equity	$225,000	$168,000

The company also provided the following additional information:

No stock was retired.

No treasury stock was sold.

During 2014, the company repaid $40,000 of long-term notes payable.

During 2014, the company borrowed $34,000 on a new note payable.

Net income for the year was $49,000.

From the info presented above, prepare the financing section of the statement of cash flows using the following format:

Financing activities:
Issuance of stock
Purchase of treasury stock
Sale of treasury stock
Borrowing on notes payable
Repayments of notes payable
Payment of dividends
Net cash from financing activities