Question

Colorado Corporation was organized at the beginning of the year, with the investment of $258,800 in...

Colorado Corporation was organized at the beginning of the year, with the investment of $258,800 in cash by its stockholders. The company immediately purchased an office building for $302,200, paying $218,700 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,400 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $94,970 from its customers. It paid $65,800 for inventory, $21,400 in salaries and wages, and another $4,100 in taxes. Colorado paid $6,600 in cash dividends.

  

  1. Prepare a statement of cash flows for the year. If your answer is zero, enter "0". Use the minus sign to indicate cash out flows, a decrease in cash or cash payments.

    Colorado Corporation
    Statement of Cash Flows
    For the First Year
    Cash flows from operating activities:
    $fill in the blank 20485b084f90fa1_2
    fill in the blank 20485b084f90fa1_4
    fill in the blank 20485b084f90fa1_6
    fill in the blank 20485b084f90fa1_8
    Net cash provided by operating activities $fill in the blank 20485b084f90fa1_9
    Cash flows from investing activities:
    fill in the blank 20485b084f90fa1_11
    Cash flows from financing activities:
    $fill in the blank 20485b084f90fa1_13
    fill in the blank 20485b084f90fa1_15
    fill in the blank 20485b084f90fa1_17
    Net cash provided by financing activities fill in the blank 20485b084f90fa1_18
    $fill in the blank 20485b084f90fa1_20
    Cash at beginning of year fill in the blank 20485b084f90fa1_21
    Cash at end of year $fill in the blank 20485b084f90fa1_22

    2. Which of the following statement is not correct?

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Homework Answers

Answer #1

SOLUTION:

Colorado Corporation

Statement of Cash Flow

For The Year Ended

Particulars Amount($) Amount($)
Cash flow from operating activities:
Cash collected from customers 94970
Cash paid for inventory (65800)
Cash paid for salaries and wages (21400)
Cash paid for taxes (4100)
Net cash flow from operating activities 3670
Cash flow from investing activities:
Cash paid for purchase of office building (218700)
Net cash flow from investing activities (218700)
Cash flow from financing activities:
Proceeds from notes payable 60400
Proceeds from stockholders 258800
Dividends paid (6600)
Net cash flow from financing activities 312600
Net increase or (Decrease) in cash 97570
Beginning cash balance 0
Ending cash balance 97570
0 0
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