Question Two: Cash Flow Statements $($Accounting and Financial$)$

Blue Planet Company's income statement and comparative balance sheets follow.

During $2023,$ the following transactions and events occurred in addition to the company's usual

business activities.

Sold investments costing $$57,000$ for $$62,000.$

Purchased land for cash.

Capitalized an expenditure made to improve the building.

Sold equipment for $$14,000$ cash that originally cost $$46,000$ and had $$28,000$ accumulated

depreciation. This means the book value of the equipment sold was $$46,000-$$$28,000=$

$$18,000.$ That is why the loss on sale of this equipment is reported as $$4,000.$

Issued bonds at face value for cash.

Acquired a patent with a fair value of $$30,000$ by issuing $300$ shares of preferred stock at par

value. Also issued an additional $200$ shares for a cash price of $$20,000.$

Declared and paid a $$60,000$ cash dividend.

Issued $4,000$ shares of common stock for cash at $$9$ per share.

Recorded depreciation of $$17,000$ on buildings and $$24,000$ on equipment.

Required

a$.$ Compute the change in cash and cash equivalents that occurred during $2021.$

b$.$ Prepare a $2023$ accounting statement of cash flows using the indirect method.

c$.$ Prepare a $2023$ financial statement of cash flows. Hint: CF $($A$)=CF(B)+CF(S)$