Columbus Corporation's 1990 and 1989 balance sheets included the following items:

Additional information about the 1990 activities of the company is as follows:

\section*{Required}
Prepare a statement of cash flows that reports the cash inflows and outflows from operating activities according to the direct method. Do not prepare a working paper. Instead, prepare the statement directly from your examination of the balance sheets and the additional information provided about the income statement and other transactions of the company. Show your supporting calculations.
Also prepare a schedule of noncash investing and financing activities.

Transcribed Image Text:

Debits Cash Accounts receivable Merchandise inventory. Prepaid expenses. Equipment. Totals. December 31 1990 1989 $146,700 72,000 $ 38,700 90,000 283,500 288,000 9,000 10,800 330,900 231.000 $842,100 $658,500