Use the following information about the cash flows of Kansas Company to prepare a complete statePreparation of statement of ment of cash flows (direct method) for the year ended December 31, 2005. Use a note disclosure for cash flows (direct) and any noncash investing and financing activities,

Transcribed Image Text:

Cash and cash equivalents balance, December 31, 2004 $ 25,000 Cash and cash equivalents balance, December 31, 2005 70,000 Cash received as interest 2,500. Cash paid for salaries ... 72,500 Bonds payable retired by issuing common stock (no gain or loss on retirement) 187,500 Cash paid to retire long-term notes payable 125,000 Cash received from sale of equipment 61,250 Cash received in exchange for six-month note payable 25.000 Land purchased by issuing long-term note payable 106,250 Cash paid for store equipment 23,750 Cash dividends paid Cash paid for other expenses Cash received from customers Cash paid for merchandise 15,000 40,000 485,000 252,500