The following financial statements and information are available for Blythe Industries, Incorporated.

Balance Sheets

As of December $31$

Year $2$ Year $1$

Assets

Cash $$178,200$ $$134,200$

Accounts receivable $114,80095,000$

Inventory $207,300191,100$

Marketable securities $($available for sale$)293,000229,000$

Equipment $723,000545,000$

Accumulated depreciation $(345,000)(267,000)$

Land $89,000133,000$

Total assets $$1,260,300$ $$1,060,300$

Liabilities and equity

Liabilities

Accounts payable $($inventory$)$ $$40,500$ $$73,600$

Notes payable$$Long$-$term $256,000278,000$

Bonds payable $222,000111,000$

Total liabilities $518,500462,600$

Stockholders$$ equity

Common stock, no par $267,900222,000$

Preferred stock, $$50$ par $121,000111,000$

Paid$-$in capital in excess of par$$Preferred stock $38,70029,800$

Total paid$-$in capital $427,600362,800$

Retained earnings $348,200278,900$

Less: Treasury stock $(34,000)(44,000)$

Total stockholders$$ equity $741,800597,700$

Total liabilities and stockholders$$ equity $$1,260,300$ $$1,060,300$

Income Statement

For the Year Ended December $31,$ Year $2$

Sales revenue $$1,168,000$

Cost of goods sold $(852,600)$

Gross profit $315,400$

Operating expenses

Supplies expense $$22,700$

Salaries expense $102,000$

Depreciation expense $100,000$

Total operating expenses $(224,700)$

Operating income $90,700$

Nonoperating items

Interest expense $(18,000)$

Gain from the sale of marketable securities $29,000$

Gain from the sale of land and equipment $14,000$

Net income $$115,700$

Additional Information

Sold land that cost $$44,000$ for $$49,000.$

Sold equipment that cost $$33,000$ and had accumulated depreciation of $$22,000$ for $$20,000.$

Purchased new equipment for $$211,000.$

Sold marketable securities that were classified as available$-$for$-$sale and that cost $$49,000$ for $$78,000.$

Purchased new marketable securities$,$ classified as available$-$for$-$sale, for $$113,000.$

Paid $$22,000$ on the principal of the long$-$term note.

Paid off a $$111,000$ bond issue and issued new bonds for $$222,000.$

Sold $100$ shares of treasury stock at its cost.

Issued some new common stock.

Issued some new $$50$ par preferred stock.

Paid dividends. $($Note: The only transactions to affect retained earnings were net income and dividends.$)$

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:

What is the cost per share of the treasury stock sold?

What was the price per share of the newly issued preferred stock?

What was the book value of the equipment sold?