Question

Statement of Cash Flows

Colorado Corporation was organized at the beginning of the year, with the investment of $256,500 in cash by its stockholders. The company immediately purchased an office building for $309,100, paying $216,500 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,200 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $94,870 from its customers. It paid $66,100 for inventory, $20,800 in salaries and wages, and another $3,700 in taxes. Colorado paid $5,900 in cash dividends.

Required:

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:
Cash collected from customers	$
Cash paid for inventory
Cash paid in salaries and wages
Cash paid for office building
Net cash provided by operating activities		$
Cash flows from investing activities:
Proceeds from sale of office building
Cash flows from financing activities:
	$
Net cash provided by financing activities
		$
Cash at beginning of year
Cash at end of year		$

2. Which of the following statement is not correct?

Answer 1

preparation of a statement of cash flows for the year -

Please check with your answer and let me know.