The Records of George Company Provided the Following Information for the Year

Essay

The records of George Company provided the following information for the year ended December 31, 2011:

Additional Information:
1. Sold the long-term investment at cost, for cash. The securities were classified as available-for-sale. The market value had not changed since acquisition.
2. Declared and paid a cash dividend of $28,000.
3. Purchased operational assets that cost $68,000 by giving a $48,000 long-term note payable and by paying $20,000 cash.
4. Paid a $16,000 long-term note payable by issuing common stock having a market value of $16,000.
5. Issued a stock dividend of $44,000.
Required:
Prepare a statement of cash flows using the direct method for George Company for the year ending December 31, 2011.