Statement of Cash Flows Wisconsin Corporation was organized on January 1, 2010, with the investment of

$400,000 in cash by its stockholders. The company immediately purchased a manufacturing facility for $300,000, paying $150,000 in cash and signing a fi ve-year promissory note for the balance. Wisconsin signed another fi ve-year note at the bank for $50,000 during 2010 and received cash in the same amount. During its fi rst year, Wisconsin collected

$310,000 from its customers. It paid $185,000 for inventory, $30,100 in salaries and wages, and another $40,000 in taxes. Wisconsin paid $4,000 in cash dividends.

Required 1. Prepare a statement of cash fl ows for the year ended December 31, 2010.

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

AppendixLO1