Answer and Explanation:
The preparation of the cash flow statement is presented below:
Cash Flows From Operating Activities  
Net Income $497,175
Adjustments made:
Less: Increase in Accounts Receivable	-$14,350  
Less: Increase in Inventory -$19,250  
Less: Decrease in accounts payable -$6,475  
Add: Increase in Income tax payable $8,225  
Add: Depreciation Expense $283,500  
Net Cash Provided by Operating Activities (A) 748,825
Cash Flows From Investing Activities  
Cash received for sale of land at book value $61,250  
Less: Cash used to purchase a building -$505,750  
Net Cash Provided by Investing Activities (B) -$444,500
Cash Flows From Financing Activities  
Cash received from issuing bonds $350,000  
Less: Cash used to purchase Treasury stock -$45,500  
Less: Cash Dividends Paid -$21,000  
Net Cash Used by Financing Activities (C) $283,500
Net Increase in Cash (A+B+C) $587,825
Add: Beginning cash balance 78,750
Ending cash balance $666,575