Statement of Cash Flows Colorado Corporation was organized on January 1, 2008, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three-year promissory note for the balance. Colorado signed a fiveyear,

$60,000 promissory note at a local bank during 2008 and received cash in the same amount.

During its first year, Colorado collected $93,970 from its customers. It paid $65,600 for inventory,

$20,400 in salaries and wages, and another $3,100 in taxes. Colorado paid $5,600 in cash dividends.

Required 1. Prepare a statement of cash flows for the year ended December 31, 2008.

2. What does this statement tell you that an income statement does not?