Question

Exercise 12-17B Direct: Preparing statement of cash flows and supporting note LO P1, P3, P5

Cash and cash equivalents balance, December 31, 2016	$	35,000
Cash and cash equivalents balance, December 31, 2017		98,420
Cash received as interest		3,500
Cash paid for salaries		101,500
Bonds payable retired by issuing common stock (no gain or loss on retirement)		145,000
Cash paid to retire long-term notes payable		175,000
Cash received from sale of equipment		85,750
Cash received in exchange for six-month note payable		35,000
Land purchased by issuing long-term note payable		84,100
Cash paid for store equipment		33,250
Cash dividends paid		21,000
Cash paid for other expenses		56,000
Cash received from customers		679,000
Cash paid for inventory		353,080

Use the above information about the cash flows of Ferron Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

The answer has been presented to the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.