Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional information to prepare the Statement of Cash Flows for the month of January 2021. Use the indirect method to prepare the operating activities section.

Issued 10,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents.

Purchased land with a cost $250,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference.

Purchased additional store equipment for $20,000 paying cash.

The $15,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an addition to the operating activities section of the

statement of cash flows.

Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section.

Used the cash proceeds from the bond issue to pay off the mortgage payable of $150,000.

The company repurchased 20,000 shares of its common stock on the open market for $9 per share.

The company reissued 10,000 of the treasury shares at a price of $18 per share.

Issued 1,500 shares of preferred stock at $105 per share.

Paid cash dividends of $25,000 to preferred and common stockholders.

Assest Cash Accounts Receivable Allowance for doubtful accounts Interest Receivable Notes Receivable Merchandise Inventory Stores Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation Building Office Equipment Accumulated Depreciation, Office Equipment Store Equipment Accumulated Depreciation, Store Equipment Patents Be Prepared Inc. Comparative Balance Sheet December 2020 and January 2020 December, 2020 January, 2020 74,800.00 $ 423,615.00 40,000.00 $ 25,000.00 $ (540.00) $ 100.00 $ 15,000.00 50,000.00 $ 7,200.00 $ 8,000.00 1,500.00 $ 500.00 3,000.00 $ 1,600.00 125,000.00 $ 375,000.00 400,000.00 $ 500,000.00 (63,000.00) $ (72,000.00) 70,000.00 $ 70,000.00 (15,000.00) $ (17,500.00) 75,000.00 $ 95,000.00 (15,000.00) $ (15,800.00) 65,800.00 $ 65,000.00 Total Assets 812,100.00 $1,480,175.00 **** On the assets side of the balance sheet prepared based on the adjusted trial balance, there is a shortag Assest Cash Accounts Receivable Allowance for doubtful accounts Interest Receivable Notes Receivable Merchandise Inventory Stores Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation Building Office Equipment Accumulated Depreciation, Office Equipment Store Equipment Accumulated Depreciation, Store Equipment Patents Be Prepared Inc. Comparative Balance Sheet December 2020 and January 2020 December, 2020 January, 2020 74,800.00 $ 423,615.00 40,000.00 $ 25,000.00 $ (540.00) $ 100.00 $ 15,000.00 50,000.00 $ 7,200.00 $ 8,000.00 1,500.00 $ 500.00 3,000.00 $ 1,600.00 125,000.00 $ 375,000.00 400,000.00 $ 500,000.00 (63,000.00) $ (72,000.00) 70,000.00 $ 70,000.00 (15,000.00) $ (17,500.00) 75,000.00 $ 95,000.00 (15,000.00) $ (15,800.00) 65,800.00 $ 65,000.00 Total Assets 812,100.00 $1,480,175.00 **** On the assets side of the balance sheet prepared based on the adjusted trial balance, there is a shortag