Problem

Use the following information about the cash flows of Kansas Company to prepare a complete...

Use the following information about the cash flows of Kansas Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2011. Use a note disclosure for any noncash investing and financing activities.

Cash and cash equivalents balance, December 31, 2010

$ 25,000

Cash and cash equivalents balance, December 31, 2011 

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

  15,000

Cash paid for other expenses

  40,000

Cash received from customers .

  485,000

Cash paid for merchandise

252,500

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