EX5-16 (1) - EXERCISE 5-16(2025 minutes(a Shabbona Corporation Statement of Cash Flows For the Year Ended Cash flows from operating activities Net

EX5-16 (1) - EXERCISE 5-16(2025 minutes(a Shabbona...

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EXERCISE 5-16 (20–25 minutes) (a) Shabbona Corporation Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities Net income ............................................................ $125,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense .................................... $27,000 Increase in accounts receivable ................... (16,000) Decrease in inventory .................................... 9,000 Decrease in accounts payable ...................... (13,000 ) 7,000 Net cash provided by operating activities ......... 132,000 Cash flows from investing activities Sale of land ........................................................... 39,000 Purchase of equipment ....................................... (60,000 ) Net cash used by investing activities ................ (21,000) Cash flows from financing activities Payment of cash dividends ................................. (60,000 ) Net increase in cash ................................................... 51,000 Cash at beginning of year ......................................... 22,000
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