The following is a list of the items to be included in the preparation of Warrick Companys 2016 statement of cash flows:

Net income, $64,900

Payment for purchase of building, $90,000

Increase in accounts receivable, $7,200

Proceeds from issuance of common stock, $37,400

Increase in accounts payable, $4,300

Proceeds from sale of land, $6,900

Depreciation expense, $10,000

Payment of dividends, $40,000

Gain on sale of land, $5,100

Decrease in inventory, $3,200

Payment for purchase of long-term investments, $9,700

Amortization of discount on bonds payable, $1,100

Proceeds from issuance of note, $15,000

Increase in deferred taxes payable, $4,500

Equipment acquired by capital lease, $19,900

Decrease in salaries payable, $2,500

Beginning cash balance, $22,900

Required

1. Prepare the statement of cash flows.

WARRICK COMPANY
Statement of Cash Flows
For Year Ended December 31, 2016
Operating Activities:
Net income	$
Adjustment for noncash income items:
Add: Depreciation expense
Add: Increase in accounts payable
Adjustments for cash flow effects from working capital items:
Net cash provided by operating activities		$
Investing Activities:
	$
Net cash used for investing activities
Financing Activities:
	$
Net cash provided by financing activities
		$
		$
Investing and Financing Activities Not Affecting Cash
Investing Activities:
		$
Financing Activities:

2. Assume the company's preferred stock has been selling for $120 per share during 2016. How many shares would the company have had to issue to avoid having a decrease in cash during the year?

shares