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

Essay

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?