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Unformatted text preview: ended December 31, 2010. Show everything you would normally see on the statement of cash flows. Solution to Problem 1 Greene, Inc. Statement of Cash Flows – Indirect Method For the Year Ended December 31, 2010 Cash flows from operating activities Net income $170,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $17,000 Loss on sale of investments 7,000 Decrease in accounts receivable 10,000 Increase in current liabilities 15,000 49,000 Net cash provided by operating activities 219,000 Cash flows from investing activities Sale of investments [($69,000 – $52,000) – $7,000] 10,000 Purchase of equipment (58,000 ) Net cash used by investing activities (48,000) Cash flows from financing activities Payment of cash dividends (73,000 ) Net increase in cash 98,000 Cash at beginning of year 82,000 Cash at end of year $180,000...
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- Spring '10