Use the following information about Ferron Company to prepare a complete statement of cash flows (direct method) for the current year ended December 31. Use a note disclosure for any noncash investing and financing activities. Cash and cash equivalents, P5 Dec. 31 prior year-end $ 40,000 Cash and cash equivalents, Dec. 31 current year-end 148,000 Cash received as interest 3,500 Cash paid for salaries 76,500 Bonds payable retired by issuing common stock (no gain or loss on retirement) . 185,500 Cash paid to retire long-term notes payable . 100,000 Cash received from sale of equipment . 60,250 Cash received in exchange for six-month note payable $ 35,000 Land purchased by issuing long-term note payable 105,250 Cash paid for store equipment 24,750 Cash dividends paid . 10,000 Cash paid for other expenses 20,000 Cash received from customers 495,000 Cash paid for inventory 254,500

Question

Use the following information about Ferron Company to prepare a complete statement of cash flows (direct
method) for the current year ended December 31. Use a note disclosure for any noncash investing and
financing activities. Cash and cash equivalents, P5
Dec. 31 prior year-end $ 40,000
Cash and cash equivalents,
Dec. 31 current year-end 148,000
Cash received as interest 3,500
Cash paid for salaries 76,500
Bonds payable retired by issuing common
stock (no gain or loss on retirement) . 185,500
Cash paid to retire long-term notes payable . 100,000
Cash received from sale of equipment . 60,250
Cash received in exchange for six-month
note payable $ 35,000
Land purchased by issuing long-term
note payable 105,250
Cash paid for store equipment 24,750
Cash dividends paid . 10,000
Cash paid for other expenses 20,000
Cash received from customers 495,000
Cash paid for inventory 254,500

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