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Question

The following information is for Redwood Inc. for the year ended December 31, 2018. Redwood had a balance for cash

and cash equivalents of $5,300 on January 1, 2018.

 

Cash Received from:    

Customers $ 1,910

Interest on investments   205

Sale of land   105

Sale of common stock   610

Issuance of debt securities   2,010

Cash Paid for:    

Interest on debt   305

Income tax   81

Debt principal reduction   1,510

Purchase of equipment   4,200

Purchase of inventory   1,000

Dividends on common stock   205

Operating expenses   505

 

Required:

Prepare statement of cash flows for the year using the direct method for operating activities. (Amounts to be deducted should be indicated with a minus sign.)

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