Spreadsheet and Statement of Cash Flows

The following information is available for Bott Company:

	Account Balances
	December 31, 2018	December 31, 2019
Debits
Cash	$ 1,800	$ 2,000
Accounts Receivable (net)	4,600	4,720
Notes Receivable (short-term)	0	1,000
Inventories	12,000	9,700
Prepaid Items	1,700	1,380
Land	11,000	17,100
Buildings and Equipment	78,000	110,000
Patent	4,400	4,000
Treasury Stock (common, at cost, $25 per share)	2,500	1,000
Totals	$116,000	$150,900
Credits
Accumulated Depreciation	$24,000	$31,800
Accounts Payable	6,000	8,210
Salaries Payable	2,600	3,500
Miscellaneous Current Payables	1,400	1,200
Interest Payable	0	140
12% Bonds Payable	0	7,000
Premium on Bonds Payable	0	650
Convertible Preferred Stock, $50 par	9,000	6,500
Additional Paid-in Capital on Preferred Stock	3,000	2,500
Common Stock, $10 par	18,000	23,500
Additional Paid-in Capital on Common Stock	28,800	41,150
Retained Earnings	23,200	24,750
Totals	$116,000	$150,900

Additional information for the year:

Beginning retained earnings, unadjusted		$23,200
Less: Prior period adjustmentcorrection of understatement of depreciation (net of income taxes)		(1,300)
Adjusted beginning retained earnings		$21,900
Add: Net income		11,500
		$33,400
Less: Cash dividends	$(4,000)
Stock dividends (150 shares at $31 per share)	(4,650)	(8,650)
Ending retained earnings		$24,750

Last year, depreciation expense was inadvertently understated in the amount of $1,800. The correction was made this year to Accumulated Depreciation and to Retained Earnings as a prior period adjustment. The company also received a related income tax refund of $500.

Sixty shares of treasury stock (common) were reissued at $30 per share.

Bonds payable with a face amount of $7,000 were issued for $7,750 on April 30, 2019. The bonds mature on April 30, 2021, and pay interest semiannually. The straight-line method is used to amortize the bond premium. Interest expense totaled $460 for 2019.

Fifty shares of preferred stock (originally issued at $60 per share) were converted into 100 shares of common stock.

Land costing $2,900 was sold for $3,800.

Three hundred shares of common stock were sold for $33 per share.

Equipment costing $32,000 was purchased during the year.

Land was acquired at a cost of $9,000 during the year.

Depreciation expense was $6,000.

Patent amortization was $400.

The company loaned money to one of its executives and received a $1,000 short-term note receivable on December 31, 2019. The note matures 90 days from the date of issuance.

Required:

Prepare a spreadsheet to support a statement of cash flows for 2019. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

Prepare Bott Company's 2019 statement of cash flows. Show the reconciliation of the net income to the net cash provided by operating activities in a separate schedule accompanying the statement. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.