Rosetta Inc.’s records contain the following information about the 2020 cash flows.

Cash and cash equivalents balance, December 31, 2019.......................... $ 37,500
Cash and cash equivalents balance, December 31, 2020............................. 84,375
Cash received as interest ................................................................................... 3,750
Cash paid for salaries ....................................................................................... 26,250
Bonds payable retired by issuing common shares
(there was no gain or loss on the retirement .............................................. 281,250
Cash paid to retire long-term notes payable ................................................. 91,875
Cash received from sale of equipment ........................................................... 37,500
Cash borrowed on six-month note payable ................................................... 37,500
Land purchased and financed by long-term note payable .......................... 159,375
Cash paid for store equipment ......................................................................... 35,625
Cash dividends paid ............................................................................................ 22,500
Cash paid for income taxes ............................................................................... 30,000
Cash received from customers ....................................................................... 363,750
Cash paid for merchandise.............................................................................. 189,375
Depreciation expense ...................................................................................... 108,750

Required

Prepare a statement of cash flows using the direct method and a note describing non-cash investing and financing activities.