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Unformatted text preview: $2,000 of Property Plan and Equipment was acquired for common stock The company issued long-term notes payable entirely for cash ation ABC Corporation Statement of Cash Flows for the years ended December 31, 2007 and 2006 Cash Flows from Operations: Net Income (loss) (120) Adjustments: Depreciation Expense 1,500 Decrease in Accounts Receivable 377 Decrease in Inventories 500 Decrease in Prepaid Expenses 100 Increase in Accounts Payable 300 Decrease in Accrued Expenses (200) Cash Flows from Operations 2,457 Cash flows from Investing Activities Purchases of PP&E for cash (1,000) Cash flows from Financing Additional borrowings 4,000 Dividend payments (2,257) Net Cash Flows from Financing 1,743 Net Change in Cash 3,200 Beginning Cash Balance 800 Ending Cash Balance 4,000...
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