Statement of Cash Flows The following is a list of the items for Lombardo Company's 2019 statement of cash flows: a. depreciation expense, $4,300 9. proceeds from issuance of note, $6,100 b. proceeds from sale of land, $5,500 h. gain on sale of land, $1,700 c. payment of dividends, $5,000 1. payment for purchase of building, $13,000 d. net income, $8,000 1. increase in accounts receivable, $2,800 e. conversion of bonds to common stock, $7,000 k. ending cash balance, $13,800 f. Increase in accounts payable, $3,200 Required: Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. Operating Activities: Net income Adjustment for noncash income items: Add: Depreciation expense Less: Gain on sale of land Adjustments for cash flow effects from working capital items: Increase in accounts receivable Increase in accounts payable Net cash provided by operating activities V Investing Activities: Financing Activities: Payment of dividends Proceeds from issuance of note Net cash provided by financing activities Net increase in cash Cash, January 1, 2019 Net increase in cash Cash, January 1, 2019> Cash, December 31, 2019V Investing and Financing Activities Not Affecting Cash Financing Activities: Conversion of bonds to common stock 7,000 Issuance of common stock to convert bonds