Question
The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: Net income, $28,100
The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: Net income, $28,100 Payment for purchase of building, $82,000 Increase in accounts receivable, $7,200 Proceeds from issuance of common stock, $39,300 Increase in accounts payable, $4,700 Proceeds from sale of land, $8,200 Depreciation expense, $20,000 Payment of dividends, $33,000 Gain on sale of land, $3,000 Decrease in inventory, $3,000 Payment for purchase of long-term investments, $9,600 Amortization of discount on bonds payable, $1,200 Proceeds from issuance of note, $20,000 Increase in deferred taxes payable, $5,100 Equipment acquired by capital lease, $17,100 Decrease in salaries payable, $2,600 Beginning cash balance, $26,400
Required
1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
2. Assume the company's preferred stock has been selling for $130 per share during 2019. How many shares would the company have had to issue to avoid having a decrease in cash during the year?
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