Use the Following Information About the Calendar-Year Cash Flows of Park

question 45

Essay

Use the following information about the calendar-year cash flows of Park Company to prepare a statement of cash flows (direct method)and a schedule of noncash investing and financing activities.
$\begin{array}{|l|r|}\hline\text { Cash and cash equivalents, beginning-year balance } & \$ 18,000 \\\hline \text { Cash and cash equivalents, year-end balance } & 78,750 \\\hline \text { Cash payments for merchandise inventory } & 75,750 \\\hline \text { Cash paid for store equipment } & 15,75 \\\hline \text { Cash borrowed on three-month note payable } & 22,500 \\\hline \text { Cash dividends paid } & 12,000 \\\hline \text { Cash paid for salaries } & 39,000 \\\hline \text { Cash payments for other operating expenses } & 48,000 \\\hline \text { Building purchased and financed by long-term note payable } & 78,000 \\\hline \text { Cash received from customers } & 220,500 \\\hline \text { Cash interest received } & 8,250 \\\hline\end{array}$