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Unformatted text preview: Net decrease in cash during the period ($23,000) Cash balance at January 1, 2006 55,000 Cash balance at end of year $32,000 Solution to Problem 3 Cash flows from operating activities: Net loss ($21,000) P Decrease in accounts receivables 10,000 P Decrease in inventory 2,000 P Increase in prepaid expense (5,000) P Increase in accounts payable 3,000 P Decrease in interest payable (2,000) P Depreciation expense 8,000 P Net cash used by operating activities ($5,000)...
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This note was uploaded on 12/09/2009 for the course FAR 5745 taught by Professor Philoreily during the Spring '09 term at Nova Southeastern University.
- Spring '09