HW E 5.16.pdf - EXERCISE 5-16(2025 minutes(a Shabbona Corporation Statement of Cash Flows For the Year Ended Cash flows from operating activities Net

HW E 5.16.pdf - EXERCISE 5-16(2025 minutes(a Shabbona...

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EXERCISE 5-16 (20–25 minutes) (a) Shabbona Corporation Statement of Cash Flows For the Year Ended December 31, 2007 Cash flows from operating activities Net income ............................................................. $125,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense ...................................... $27,000 Increase in accounts receivable ..................... (16,000) Decrease in inventory ..................................... 9,000 Decrease in accounts payable ....................... (13,000) 7,000 Net cash provided by operating activities ........... 132,000 Cash flows from investing activities Sale of land ............................................................. 39,000 Purchase of equipment ......................................... (60,000 ) Net cash used by investing activities .................. (21,000) Cash flows from financing activities Payment of cash dividends .................................. (60,000 ) Net increase in cash .................................................... 51,000 Cash at beginning of year ...........................................
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