Exercise $12-21$B $($Algo$)$ Direct: Preparing statement of cash flows and supporting note LO P$5$

Cash and cash equivalents, December $31$ prior year$-$end $ $34,000$

Cash and cash equivalents, December $31$ current year$-$end $61,608$

Cash received as interest $3,400$

Cash paid for salaries $98,600$

Bonds payable retired by issuing common stock $($no gain or loss on retirement$)115,000$

Cash paid to retire long$-$term notes payable $170,000$

Cash received from sale of equipment $83,300$

Land purchased by issuing long$-$term notes payable $66,700$

Cash paid for store equipment $32,300$

Cash dividends paid $20,400$

Cash paid for other expenses $54,400$

Cash received from customers $659,600$

Cash paid for inventory $342,992$

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

Note: Amounts to be deducted should be indicated with a minus sign.

FERRON COMPANY

Statement of Cash Flows

For Year Ended December $31$

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Net increase $($decrease$)$ in cash and cash equivalents

Cash and cash equivalents at prior year$-$end

Cash and cash equivalents at current year$-$end

Noncash investing and financing activities