Statement of Cash Flows - Intermediate Financial Homework

Hey guys,

I'm trying to figure out if I did this problem correctly. Would someone mind taking a look and letting me know if I've made a mistake? I've been having trouble with a couple of my homework problems and I'm running out of places to look for answers. I intend on going to tutoring tomorrow, but if I can complete this specific problem before I go to bed tonight, I'll sleep much easier.

I'm primarily uncertain about the formula for net income in this situation. Also, did I handle the equipment line items appropriately? What I see is a $2,000 loss and I'm adding back into the net income for the cash difference. This is all new material to me, so if there are other mistakes (I'm sure there are), please point them out.

Here is the problem and my solution

Also, I'm uncertain about which company the $10,000 dividends pertains to. Does it seem like the company in the problem is declaring dividends or is it the company the 50,000 shares were purchased from? Personally, I assumed it was from the original company in the problem, but maybe I've been looking at this for too long.