Use the following information about the cash flows of Ferron Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2013. Use a note disclosure for any noncash investing and financing activities.

Cash and cash equivalents balance, December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . $ 40,000

Cash and cash equivalents balance, December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . 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 merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,500