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Can you please help with an accounting homework question (cash flow statements)?

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  • Can you please help with an accounting homework question (cash flow statements)?


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Answer #1 | 28/12 2013 05:39
Indirect Method Cash Flow Statement Cash flows from operating activities Net income 153,790 Adjustments to reconcile net income to net cash provided by operating activities Increase in accounts receivable, net (220) Increase in commission income accrued (1,700) Increase in inventories (5,300) Decrease in accounts payable (4,270) Decrease in accrued salaries and wages (400) Net cash from operating activities 141,900 Cash flows from investing activities Purchase of motor vehicle (37,000) Net cash used in investing activities (37,000) Cash flows from financing activities Proceeds from issue of share capital 50,000 Proceeds from new finance company loan 50,000 Repayment of finance company loan (10,000) Dividends paid (36,000) Net cash from financing activities 54,000 Net increase in cash and cash equivalents 158,900 CCE at beginning of period (88,810) CCE at end of period 70,090

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