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Your company decides to purchase a new Truck for delivering product to your customers, $75,000 is the

price, they put $10,000 down in cash, and finance $65,000. The payments are $1000 per month and the interest rate is 5%.


They purchase this truck in January, let's start with that original Journal Entry and then by the end of that calendar year, what other JE would we make (depreciation, interest/payments!?)


Looking back at the first year, how did this effect the statement of cash flows, what is the final impact to each of the three areas of cash flow?


2.With a small biz like a restaurant, would you have "receivables" or that might not effect cash flows at all, you are paid at time of service/delivery?

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