Statement of Cash Flows The following is a list of the items to be included in the preparation of Wa

Statement of Cash Flows

The following is a list of the items to be included in the preparation of Warrick Company’s 2016 statement of cash flows: Net income, $41,600 Payment for purchase of building, $90,000 Increase in accounts receivable, $7,200 Proceeds from issuance of common stock, $37,000 Increase in accounts payable, $5,000 Proceeds from sale of land, $8,400 Depreciation expense, $20,000 Payment of dividends, $38,000 Gain on sale of land, $3,000 Decrease in inventory, $3,300 Payment for purchase of long-term investments, $8,600 Amortization of discount on bonds payable, $1,600 Proceeds from issuance of note, $19,000 Increase in deferred taxes payable, $5,900 Equipment acquired by capital lease, $19,400 Decrease in salaries payable, $2,700 Beginning cash balance, $27,200

Required

1. Prepare the statement of cash flows. WARRICK COMPANY Statement of Cash Flows For Year Ended December 31, 2016 Operating Activities: $ Adjustment for noncash income items: Adjustments for cash flow effects
from working capital items: Net cash provided by operating activities $ Investing Activities: $ Net cash used for investing activities Financing Activities: $ Net cash provided by financing activities $ $ Investing and Financing Activities Not Affecting Cash Investing Activities: $ Financing Activities:

2. Assume the company's preferred stock has been selling for $110 per share during 2016. How many shares would the company have had to issue to avoid having a decrease in cash during the year?