Vaughn Land Company reported $532,000 of net income for 2020. The accountant, in preparing the statement of cash flows, noted several items occurring during 2020 that might affect cash flows from operating activities. 1. 2. 3. Vaughn declared a $1.50 cash dividend. Ten thousand shares of $1 par common stock were outstanding at the date of record. Vaughn revised its estimate for warranty expense. Before 2020, Vaughn's warranty expense was 0.5% of its net sales. In 2020, this percentage was increased to 0.7%. Net sales for 2020 were $5,837,000, and the accrued warranty expense increased by $93,000 during 2020. Vaughn sold 500 shares of treasury stock for $44 per share. The shares were originally purchased for $37 per share. 4. Depreciation expense is $155,000. 5. 6. Vaughn issued 2.000 shares of its $1 par common stock for a building. The market value of the shares on the date of the transaction was $43 per share. Vaughn holds 30% of Windy Company's common stock as a long-term investment. Windy Company reported $96,500 of net income and paid dividends of $34,900 for 2020. Vaughn purchased $55,300 of debt securities and classified the investment as available-for-sale. The market prices increased to $57,700 by the end of the year.