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Unformatted text preview: Prepare a statement of cash flows IN GOOD FORM for the year ended December 31, 2010. Lobnitz Company Statement of Cash Flows For the year ended December 31, 2010 Cash , beginning of year $600,000 Operating activities: Net income 187,000 Depreciation expense 130,000 Gain on sale of fixed assets ( 15,000) Change in accounts receivable 125,000 Change in prepaid expenses ( 25,000) Change in accured expenses payable ( 100,000) Cash flows provided by operating activities 302,000 Investing activities: Capital expenditures ( 250,000) Proceeds from asset sales 35,000 Cash flows used in investing activities ( 215,000) Financing activities: Dividends to shareholders ( 87,000) Additions to long-term debt 300,000 Reductions of long-term debt ( 500,000) Proceeds from issuing stock 100,000 Cash flows used in financing activities (187,000) Change in cash (100,000) Cash, end of year $500,000 1 2...
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