Chapter 05.3 - Homework - EXERCISE515(a ,2014 Netincome activities Depreciationexpense $17,000 Lossonsaleofinvestm

Chapter 05.3 - Homework - EXERCISE515(a ,2014 Netincome...

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EXERCISE 5-15  (a) Zubin Mehta Corporation Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities       Net income .............................................................. $160,000       Adjustments to reconcile net income          to net cash provided by operating           activities:             Depreciation expense ...................................... $17,000             Loss on sale of investments ........................... 10,000             Decrease in accounts receivable .................... 5,000             Decrease in current liabilities .........................  (17,000)     15,000       Net cash provided by operating activities ........... 175,000 Cash flows from investing activities       Sale of investments ............................................... 12,000          [($74,000 – $52,000) – $10,000]       Purchase of equipment .........................................  (58,000 )       Net cash used by investing activities .................. (46,000) Cash flows from financing activities       Payment of cash dividends ...................................    (30,000 ) Net increase in cash .................................................... 99,000 Cash at beginning of year ...........................................     78,000
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