Colorado Corporation was organized at the beginning of the year, with the investment of $255,900 in cash by its stockholders. The company immediately purchased an office building for $309,800, paying $211,200 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $61,000 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $94,570 from its customers. It paid $66,200 for inventory, $21,100 in salaries and wages, and another $3,400 in taxes. Colorado paid $6,400 in cash dividends.
Required:
Problem 1. Prepare a statement of cash flows for the year.