Statement of Cash Flows The following is a list of the items for Lombardo Company's 2019 statement of cash flows: a. depreciation expense, $4,100 b. proceeds from sale of land, $5,500 c. payment of dividends, $5,000 d. net income, $7,800 e. conversion of bonds to common stock, $7,000 f. increase in accounts payable, $3,000 g. proceeds from issuance of note, $6,100 h. gain on sale of land, $1,700 i. payment for purchase of building, $14,000 j. increase in accounts receivable, $2,800 k. ending cash balance, $14,000 Required: Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. LOMBARDO COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income $ 7,800 Adjustment for noncash income items: Add: Depreciation expense 4,100 Less: Increase in inventory x Adjustments for cash flow effects from working capital items: Decrease in accounts receivable x 2,800 -3,000 x x Decrease in accounts payable x Net cash provided by operating activities Investing Activities: Proceeds from sale of land $ 5,500 - 14,000 Payment for purchase of building Net cash used for investing activities -8,500 Investing Activities: Proceeds from sale of land $ 5,500 - 14,000 Payment for purchase of building Net cash used for investing activities -8,500 Financing Activities: Payment of dividends $ 5,000 x -6,100 x Proceeds from issuance of note Net cash provided by financing activities 1,100 x Net decrease in cash x Cash, January 1, 2019 14,000 Cash, December 31, 2019 14,000 Investing and Financing Activities Not Affecting Cash Financing Activities: Conversion of common stock to bonds x Issuance of preferred stock to convert bonds x