The cash flow statement shows that although net income was $ ,000 in 2012, Cash increased by

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The cash flow statement shows that although net income was

$ ,000 in 2012, Cash increased by only $ ,000. Operating activities generated $ ,000 in cash; $ ,000 of this cash was used to pay dividends. The remaining additional cash inflow was used to acquire new PPE. The cost of the new assets was

$ ,000; $ ,000 of this cost was financed by additional borrowing, and cash was used for the remainder. From the cash inflows,

$ ,000 remained in the Cash account. This is a simple, but useful, way to tell the “cash flow story” of an organization.

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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