1. The Companys income statement and comparative balance sheets as of December 31 of 2019 and 2018 are below.

During the year the following transactions occurred:

1. Sold long-term investments for $60,000
2. Purchased land for cash
3. Capitalized an expenditure made to improve the building
4. Sold equipment for $14,000 cash that originally cost $46,000
5. Issued bonds payable at face value for cash
6. Declared and paid a cash dividend
7. Issued 3,000 shares of common stock for cash at $8 per share
8. Recorded depreciation of $16,000 on buildings and $23,000 on equipment.

Required

1. Prepare a statement of cash flows for the year ended December 31, 2019

SKY COMPANY Income Statement For Year Ended December 31, 2019 Sales Dividend Income $ 800,000 19,000 819,000 SKY COMPANY BALANCE SHEET For the year ended December 31, 2019 Dec. 31, Dec. 31, 2019 2018 Assets Cash and cash equivalents $ 63,000 $ 29,000 Accounts Receivable 45,000 35,000 Inventory 100,000 77,000 Prepaid expenses 10,000 6,000 Long-term investments 50,000 Land 190,000 100,000 Buildings 445,000 350,000 Accumulated Depreciation-Buildings (91,000) (75,000) Equipment 179,000 225,000 Accumulated Depreciation Equipment (42,000) (46,000) Patents 50,000 32,000 Total Assets $ 949,000 $783,000 Cost of Goods Sold Wages and other operating expenses Depreciation expense Patent amortization expense Interest expense Income tax expense Loss on sale of equipment Gain on sale of investments Net Income $440,000 130,000 39,000 7,000 13,000 30,000 5,000 (10,000) 654,000 $ 165,000 Liabilities and Stockholders' Equity Accounts payable Interest payable Income tax payable Bonds payable Preferred stock ($100 par value) Common stock ($5 par value) Paid-in-capital in excess of par - Common Retained earnings Total liabilities and stockholders' equity $ 21,000 $ 18,000 6,000 5,000 8,000 12,000 135,000 130,000 100,000 75,000 379,000 364,000 133,000 124,000 167,000 55,000 $ 949,000 $783,000