Required Organize the class into three sections and divide each section into groups of three to five students. Assign each section of groups an activity section of the statement of cash flows (operating activities, investing activities, or financing activities).

Group Task Prepare your assigned portion of the statement of cash flows using the direct method. Have a representative of your section put your activity section of the statement of cash flows on the board. As each section adds its information on the board, the full statement of cash flows will be presented.

Class Discussion Have the class finish the statement of cash flows by computing the net change in cash. Also have the class answer the following questions:

1. What is the cost per share of the treasury stock sold?
2. What was the price per share of the newly issued preferred stock?
3. What was the book value of the equipment sold?

The following financial statements and Information are available for Blythe Industries, Incorporated. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $180, 280 $135,7ee Accounts receivable 116,100 96.ee Inventory 209.700 193, 2ee Marketable securities (available for sale) 294,000 230,eee Equipment 731,080 551, eee Accumulated depreciation (349,000) (270.000) Land 99,880 135. eee Total assets $1,272,689 $1,078,9ee Liabilities and equity Liabilities Accounts payable (inventory) $40,980 $74.5ee Notes payable-long-term 259.000 281,600 Bonds payable 225,889 112,600 Total liabilities 524,900 467,5ee Stockholders' equity Common stock, no par 270,300 225, eee Preferred stock, $se par 122,880 112,600 Paid-in capital in excess of par-Preferred stock 40, 180 30, 180 Total paid-in capital 432,480 367,100 Retained earnings 349,700 281,300 Less: Treasury stock (35,eee) (45,00) Total stockholders' equity 747,180 6e3,40 Total liabilities and stockholders' equity $1,272,689 $1,678,900 $1,181,880 (862,280) 318,880 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross profit Operating expenses Supplies expense Salaries expense Depreciation expense Total operating expenses Operating income Nonoperating items Interest expense Gain from the sale of marketable securities Gain from the sale of land and equipment Net income $22,9ee 183, eee 101, eee (226,900 91,980 (18,000) 29,880 12,000 $114,900 Additional Information 1. Sold land that cost $45.000 for $49.000. 2 Sold equipment that cost $34.000 and had accumulated depreciation of $22,000 for $20.000. 3. Purchased new equipment for $214,000. 4. Sold marketable securities that were classified as available-for-sale and that cost $50.000 for $79.000. 5. Purchased new marketable securities, classified as available-for-sale, for $114.000. 6. Paid $22.000 on the principal of the long-term note. 7. Pald off a $112,000 bond issue and issued new bonds for $225.000 8. Sold 100 shares of treasury stock at its cost. 9. Issued some new common stock. 10. Issued some new $50 par preferred stock. 11. Pald dividends. (Note: The only transactions to affect retained earnings were net Income and dividends.) Statement or Cash Flows Req A to C Prepare a statement of cash flows using the direct method. (Cash outflows should be BLYTHE INDUSTRIES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash Receipts from Sales 0 Total cash inflows Cash payments for: Total cash outflows 0 Cash flows from investing activities: Cash flows from financing activities: 0 0 Ending cash balance $ 0