The following are the December 31, 2006 post-closing trial balance and the December 31, 2007 adjusted trial balance of the Adair Company:

A review of the accounting records reveals the following additional information for 2007:
(a) Investments in bonds to be held to maturity were purchased at year-end for $8,600.
(b) A building was purchased for $28,000.
(c) A note payable was issued for $9,000.
(d) Common stock was issued for $14,500.
(e) Dividends of $6,500 were declared and paid.
Required
1. Using the direct method for operating cash flows, prepare a worksheet (spreadsheet) to support the 2007 statement of cash flows for the Adair Company.
2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is notnecessary.)

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12/31/06 Post-Closing Trial Balance 12/31/07 Trial Balance Accounts Credit Credit 105,300 Accumulated depreciation 42,400 ble 0 Common stock, no par Retained eamings 38,000 Cost of goods sold Depreciation expense 4 12,000 Other operating expenses 133,400 133,400 247,500 247,500