Chapter 21, Problem 17P

(Appendix 21.1) Comprehensive The following are Adair Company’s December 31, 2018, post-closing trial balance and the December 31, 2019, adjusted trial balance:

A review of the accounting records reveals the following additional information for 2019:

• Investments in bonds to be held to maturity were purchased at year-end for $8,600.
• A building was purchased for $28,000.
• A note payable was issued for $9,000.
• Common stock was issued for $14,500.
• Dividends of $6,500 were declared and paid.

Required:

1. 1. Using the direct method for operating cash flows, prepare a spreadsheet to support the 2019 statement of cash flows for Adair.
2. 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)