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Unformatted text preview: occurred but not yet be funded. In Thai’s case, notice that $22,500 of the revenues have not yet been collected, as evidenced by the increase in accounts receivable. Conversely, $1,500 of the rent cost has not yet been paid, as evidenced by the rent payable liability. c) A business will generate or expend cash from investing activities (like buying and selling property, investment securities, and so forth). A business will also have financing activities that can be a source or use of cash (examples include issuing stock, paying dividends, and borrowing/repaying loans). d) At this point in their studies, most students will be challenged to prepare the following statement of cash flows! The student worksheet includes substantial preformatting to aid the process. Be sure to tell your students to not be discouraged by this complex problem - focus on the central theme that this it is an important financial statement. The preparation and use is the subject of a complete chapter much later in the book. THAI COMPANY Statement of Cash Flows For the Year Ending December 31, 20X1 Operating activities Cash received from customers $ 82,500 Cash paid for wages (45,000) Cash paid for rent (16,500) Cash provided by operations $ 21,000 Investing activities Purchase of equipment - (75,000) Financing activities Issue stock $ Proceeds of loan 15,000 45,000 Increase in cash 60,000 $ Cash, January 1 6,000 - Cash, December 31 $ 54 6,000...
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This homework help was uploaded on 02/26/2014 for the course ACCOUNTING PARCOR taught by Professor Proftamaray during the Spring '14 term at University of the East, Manila.

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