fm3 14 - $ - payment of cash dividends $ (11,000) Net cash...

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Mini Case: 3 - 14 Statement of Cash Flows Operating activities Net income $ (95,136) Adjustments: noncash adjustments: depreciation 116,960 changes in working capital: change in accounts receivable (280,960) change in inventories (572,160) change in accounts payable 178,400 change in accruals 148,960 Net cash provided by operating activities $ (503,936) Investing activities Cash used to acquire fixed assets $ (711,950) change in short term investments $ 28,600 Net cash provided by operating activities $ (683,350) Financing activities change in notes payable $ 520,000 change in long-term debt $ 676,568 change in common stock
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Unformatted text preview: $ - payment of cash dividends $ (11,000) Net cash provided by financing activities $ 1,185,568 Summary Net change in cash $ (1,718) Cash at beginning of year 9,000 Cash at end of year $ 7,282 a. What effect did the expansion have on sales and net income? What effect did the expansion have on the asset side of the balance sheet? What effect did it have on liabilities and equity? Answer: Sales increased by over by over $2.4 million, but net income fell by over $190,000. Assets almost doubled. Debt and funds provided by suppliers increased, but retained earnings fell due to the years loss....
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