The statement of retained earnings of Gary Larson Publishers is presented below.

Required:
For the transactions that affected Larson's retained earnings, reconstruct the journal entries that can be used to determine cash flows to be reported in a statement of cash flows. Also indicate any investing and financing activities you identify from this analysis that should be reported on the statement of cash flows.

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GARY LARSON PUBLISHERS Statement of Retalned Earnings For the Year Ended December 31, 2018 (S in millions) Retalned earnings, January 1 Add: Deduct: Net income Cash dividend Stock dividend (1 million shares of $1 par common stock) Property dividend (Garfield Company preferred stock held $200 75 (25) (16) (12) as a short-term investmet) Sale of treasury stock (cost $53 million) (10) Retalned earnings, December 31 $212