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1) Compute Cash Flows From (or Used by) Operating Activities: A) $11,875 B) $18,750 C) $22,750 D) $25,375 2) Compute Cash Flows From (or Used
1) Compute Cash Flows From (or Used by) Operating Activities:
A) $11,875
B) $18,750
C) $22,750
D) $25,375
2) Compute Cash Flows From (or Used by) Investing Activities:
A) -$17,000
B) -$17,500
C) -$19,000
D) -$20,500
E) -$22,500
3) Compute Cash Flows From (or Used by) Financing Activities:
A) $10,000
B) $15,000
C) $20,000
D) $40,000
JGC Corporation Comparative Balance Sheets At December 31, 20X2 20X1 Difference Cash $53,125 $35,250 17,875 27,000 -18,750 Accounts receivable 45,750 Inventory 12,000 9,000 3,000 Investments: hold to maturity 0 3,000 -3,000 Land 15,000 16,250 -1,250 -11,875 Buildings (net of depreciation) 11,875 23,750 38,000 22,500 Equipment (net of depreciation) 15,500 $148,500 Total Assets $157,000 Liabilities and Shareholders' Equity Accounts payable 1,000 $18,250 $19,250 Salaries payable 8,000 10,000 -2,000 Short-term notes payable 50,000 51,000 -1,000 Common stock 50,000 40,000 10,000 Retained earnings 30,750 28,250 2,500 Total Liabilities and Equity $157,000 $148,500 Additional Information for 20X2: 1. The company recorded net income of $2,500 2. There were no losses from the disposal of the fully depreciated building. gains 3. Land costing $1,250 was sold for $2,000. 4. Investments were sold at cost. 5. JGC Corporation Board of Directors did not declare dividends in 20X2 Required: Using the Indirect Method, 1) Compute Cash Flows From (or Used by) Operating Activities 2) Compute Cash Flows From (or Used by) Investing Activities 3) Compute Cash Flows From (or Used by) Financing ActivitiesStep by Step Solution
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