Karaoke Records Company uses the indirect method to prepare its statement of cash flows

Refer to the following sections of the comparative balance sheet:

Karaoke Records Company
Comparative Balance Sheet
December 31, 2017 and 2016

2017 2016 Increase (Decrease)
Accounts Payable $ 6,000 $ 9,000 $(3,000 )
Accrued Liabilities 3,000 1,500 1,500
Long-term Notes Payable 126,000 135,000 (9,000 )
Total Liabilities $ 135,000 $ 145,500 $(10,500 )

Common Stock 45,000 3,000 42,000
Retained Earnings 169,500 111,000 58,500
Treasury Stock (12,000 ) (7,500 ) (4,500 )
Total Equity 202,500 106,500 96,000

Total Liabilities and Stockholders' Equity $337,500 $252,000 $85,500

Additional information for 2017:
• No stock was retired.
• No treasury stock was sold.
• The company repaid $60,000 of long-term notes payable.
• The company borrowed $51,000 on a new long-term note payable.
• Net income for the year was $68,000.

Prepare the financing section of the statement of cash flows for the year ended December 31, 2017.

What will be an ideal response

Cash Flows from Financing Activities:
Cash Receipt from Issuance of Common Stock $42,000
Cash Payment for Purchase of Treasury Stock (4,500 )
Cash Receipt from Issuance of Notes Payable 51,000
Cash Payment of Notes Payable (60,000 )
Cash Payment of Dividends (9,500 )
Net Cash Provided by Financing Activities $19,000