Response to the following problem:
Use the following information about the cash flows of Kansas Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2011. Use a note disclosure for any noncash investing and financing activities.
Cash and cash equivalents balance, December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000
Cash and cash equivalents balance, December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
Cash received as interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500
Cash paid for salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,500
Bonds payable retired by issuing common stock (no gain or loss on retirement) . . . . . . . . . . 187,500
Cash paid to retire long-term notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,000
Cash received from sale of equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,250
Cash received in exchange for six-month note payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Land purchased by issuing long-term note payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,250
Cash paid for store equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,750
Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Cash paid for other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Cash received from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485,000
Cash paid for merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252,500