Use the following information about the cash flows of Ferron Company to prepare a complete statement of

Question:

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, 2016. Use a note disclosure for any noncash investing and financing activities.

Cash and cash equivalents balance, December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,000

Cash and cash equivalents balance, December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,500

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...