FA08Quiz5Key - (d) paid cash of $30 for the next 6 months...

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Financial Accounting Quiz 5 Name: Fall 2008 Company N started business on January 1, 2008. For simplicity, assume that all of the following transactions occurred on January 1. Company N: (a) issued common stock for $50 (b) purchased inventory for $30 on account (to be paid in February) (c) sold inventory that cost $20 for $40 on account (to be collected in February)
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Unformatted text preview: (d) paid cash of $30 for the next 6 months rent (January 1 June 30). Required: 1. Prepare a cash flow statement for the month of January using the direct method. 2. Prepare the operating activities section of the cash flow statement for the month of January using the indirect method....
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