Travis Dorso-Decision Case 4-4

Travis - $888,000.00 Cash Used By Operating Activities $132,000.00 2 Preferably based on the cash flow statement not the income statement it would

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GB518: Financial Accounting Principles and Analysis Chapter 1- Accounting as a Form of Communication (Decision Case 4.4 – The Use of Net Income and Cash Flow to Evaluate a Company) Travis Dorso GB518- Unit 2 Decision Case Professor Wendy W. Achilles, PhD, CPA 1. Prepare Statement of Cash Flows Statement of Cash Flows for Duke, Inc. (Direct Method) Cash Received From Consulting services $1,020,000.00 $1,020,000.00 Cash Paid For Salaries and wages $440,000.00 Supplies $100,000.00 Utilities $30,000.00 Rent $180,000.00 Interest $138,000.00
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Unformatted text preview: $888,000.00 Cash Used By Operating Activities $132,000.00 2. Preferably based on the cash flow statement, not the income statement, it would be determined that it would be an intelligent decision to join Duke Incorporated because it shows a positive cash flow. However the main question to be asked would be how Duke incorporated were expecting to raise capital? Would Duke incorporated achieve this by selling stock? What plans does this company have in expansion and longevity?...
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This note was uploaded on 01/26/2012 for the course BUSINESS Accounting taught by Professor N/a during the Spring '11 term at Kaplan University.

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Travis - $888,000.00 Cash Used By Operating Activities $132,000.00 2 Preferably based on the cash flow statement not the income statement it would

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