Exercise 12-17B Direct: Preparing statement of cash flows and supporting note LO P1, P3, P5 Cash and cash equivalents balance, December 31, 2016$35,000
Cash and cash equivalents balance, December 31, 2017 98,420
Cash received as interest 3,500
Cash paid for salaries 101,500
Bonds payable retired by issuing common stock (no gain or loss on retirement) 145,000
Cash paid to retire long-term notes payable 175,000
Cash received from sale of equipment 85,750
Cash received in exchange for six-month note payable 35,000
Land purchased by issuing long-term note payable 84,100
Cash paid for store equipment 33,250
Cash dividends paid 21,000
Cash paid for other expenses 56,000
Cash received from customers 679,000
Cash paid for inventory 353,080
Use the above information about the cash flows of Ferron Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.)

Ferron Company

Statement of Cashflow for the year ended December 31, 2017

                                                                                                        $

Cash flow from Operating Activities

Cash received from customers                                                  679,000

Cash paid to Suppliers and Employees                                    (510,580)

Cash flow from Investing Activities

Cash received as interest                                                               3,500

Cash received from sale of equipment                                       85,750

Cash paid for store equipment                                                   (33,250)

Cash flow from Financing Activities

Payments to Retire long-term notes payable                           (175,000)

Cash dividends paid                                                                    (21,000)

Changes in Cash and Cash equivalents during the year       63,420

Beginning Cash and Cash equivalents balance                      35,000

Ending Cash and Cash equivalents balance                            98,420

Explanation:

The Cashflow statement shows changes in Cash and Cash equivalents during the reporting Period.

Note the Direct Method is required for preparation. This applies on the Cash flow from Operating Activity Section.

Only items involving the flow of Cash are shown on the face of the Cashflow statement. Any other transactions are disclosed in  Notes to Financial Statements.

Cash paid to Suppliers and Employees calculation

Cash paid for salaries                                       101,500

Cash paid for other expenses                          56,000

Cash paid for inventory                                   353,080

Cash paid to Suppliers and Employees         510,580

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.