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		$1,200
Accounts Receivable				$1,500
Inventory		1,600
Buildings and Equipment		8,500
Accumulated Depreciation				2,500
Accounts Payable		1,000
Common Stock, no par				5,200
Retained Earnings				3,100
		$12,300		$12,300

Additional information: Net income totaled $6,000. Dividends were declared and paid. Equipment was purchased for $8,500. No buildings and equipment were sold during the year. One hundred shares of common stock were sold for $52 per share. The ending cash balance was $4,100.

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	$6,000
Adjustment for noncash income items:
Add: Depreciation expense	2,500
Adjustments for cash flow effects from working capital items:
Decrease in accounts receivable	1,500
Increase in inventory	-1,600
Decrease in accounts payable	-1,000
Net cash provided by operating activities		$7,400
Investing Activities:
Payment for purchase of equipment	$-8,500
Net cash used for investing activities		-8,500
Financing Activities:
Proceeds from issuance of common stock	$5,200
Payment of dividends	__________
Net cash provided by financing activities		__________
Net increase in cash		__________
Cash, January 1, 2019		__________
Cash, December 31, 2019		__________