Mill Valley Corporation was organized on January 1, 2014, with the investment of $225,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $201,000 in cash and signing a three-year promissory note for the balance. Mill Valley signed a five-year, $50,000 promissory note at a local bank during 2014 and received cash in the same amount. During its first year, Mill Valley collected $93,000 from its customers. It paid $60,600 for inventory, $22,400 in salaries and wages, and another $5,100 in taxes. Mill Valley paid $5,300 in cash dividends.
Required
1. Prepare a statement of cash flows for the year ended December 31, 2014.
2. What does this statement tell you that an income statement does not?

Question

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The Answer of Mill Valley Corporation was organized on January 1, 2014, with the investment of $225,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $201,000 in cash and signing a three-year promissory note for the balance. Mill Valley signed a five-year, $50,000 promissory note at a local bank during 2014 and received cash in the same amount. During its first year, Mill Valley collected $93,000 from its customers. It paid $60,600 for inventory, $22,400 in salaries and wages, and another $5,100 in taxes. Mill Valley paid $5,300 in cash dividends.
Required
1. Prepare a statement of cash flows for the year ended December 31, 2014.
2. What does this statement tell you that an income statement does not?

Mill Valley Corporation Was Organized on January 1, 2014, with the Investment