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Unformatted text preview: (5 points) Pederson Company’s balance sheets at December 31 2006 and 2007 are presented below: Pederson Company Statement of Cash Flows For the Year Ended December 31, 2007 Cash , beginning of the year $ 644,000 Operating activities Net income 90,000 Depreciation expense 10,000 Loss on sale of fixed asset 53,000 Change in prepaid expenses (235,000) Change in accrued expenses payable 196,000 Cash provided by operating activities 114,000 Investing activities Capital expenditures (225,000) Proceeds from sale of fixed asset 7,000 Cash used in investing activities (218,000) Financing activities Additions to long-term debt 250,000 Reductions of long-term debt (100,000) Dividends paid ( 50,000) Treasury purchases ( 40,000) Cash provided by financing activities 60,000 Change in cash ( 44,000) Cash, end of the year $ 600,000 1...
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This note was uploaded on 03/03/2011 for the course ACCT 3391 taught by Professor Turpin during the Spring '10 term at Troy.
- Spring '10