Visual Inspection

Gordon Company's accounting records provided the following changes in account balances and other information for 2019:

		Net Changes for 2019
		Debit		Credit
Cash		$1,000
Accounts Receivable				$1,100
Inventory		2,000
Buildings and Equipment		8,800
Accumulated Depreciation				2,900
Accounts Payable		900
Common Stock, no par				5,500
Retained Earnings				3,200
		$12,700		$12,700

Additional information: Net income totaled $5,800. Dividends were declared and paid. Equipment was purchased for $8,800. No buildings and equipment were sold during the year. One hundred shares of common stock were sold for $55 per share. The ending cash balance was $4,200.

Required:

Using visual inspection, prepare a 2019 statement of cash flows for Gordon. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.

GORDON COMPANY
Statement of Cash Flows
For Year Ended December 31, 2019
Operating Activities:
Net income
Adjustment for noncash income items:
Add: Depreciation expense
Adjustments for cash flow effects from working capital items:
Decrease in accounts receivable
Increase in inventory
Decrease in accounts payable
Net cash provided by operating activities
Investing Activities:
Payment for purchase of equipment
Net cash used for investing activities
Financing Activities:
Proceeds from issuance of common stock
Payment of dividends
Net cash provided by financing activities
Net increase in cash
Cash, January 1, 2019
Cash, December 31, 2019