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Unformatted text preview: 1. Cash flow from operating activities Net income 82,000 Adjustments to reconcile net inome to net cash flow from operating activities. depreciation 25,000 Changes in current operating assets and liabilities increase in AR-27,750 decrease in Inventories 30,200 increase in Prepaid insurance-2,000 Decrease in AP-7,700 Decrease in Interest payable-4,500 Increase in Income tax payable 14,000 Net cash flow from operating activities 109,250 2. Cash flow from investing activities Cash paid to purchase: Builiding and Equipment ($200,000) Net cash flow from investing activities ($200,000) 3. Cash flow from financing activities Cash received from issuing the stock 100,000 less dividends 22,000 78,000 Net cash flow from the financing activities Decrease in cash ($12,750) Cash in the beginning of the year $471,450 Cash at the end of the year $458,700...
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This note was uploaded on 10/24/2011 for the course ECON 101 taught by Professor Abcd during the Fall '11 term at RMIT Vietnam.
- Fall '11