7-amber_solution - $ (25,000 ) Net cash used in investing...

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Amber Company Statement of Cash Flows (Indirect method) For the Year Ended December 31, 2005 Cash flows from operating activities: Net income. .................................................................................. $ 83,500 Adjustments: Depreciation. ............................................................................. 27,500 Increase in accounts receivable. ............................................ (8,000) Increase in inventory. .............................................................. (10,000) Decrease in supplier short-term notes payable. ................... (20,000) Increase in accounts payable. ................................................ 25,000 Net cash provided by operating activities. ............................... $ 98,000 Cash flows from investing activities: Purchase of equipment*. ............................................................
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Unformatted text preview: $ (25,000 ) Net cash used in investing activities. ....................................... (25,000) Cash flows from financing activities: Retirement of bonds. .................................................................. $ (50,000) Payment of dividends. ................................................................ (10,000 ) Net cash used in financing activities. ....................................... (60,000 ) Net increase in cash and cash equivalents. ............................. $ 13,000 Cash and cash equivalents at beginning of year. ....................... 28,000 Cash and cash equivalents at end of year. .............................. $ 41,000 *An additional $25,000 of equipment was purchased with a long-term note....
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This note was uploaded on 05/04/2008 for the course ACCT 3320 taught by Professor Frankzhang during the Summer '06 term at University of Texas at Dallas, Richardson.

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