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Big Horn Company reported net income of $3,200 for the current year. The company's income statement shows depreciation expense of $750. Balances for the company's

Big Horn Company reported net income of $3,200 for the current year. The company's income statement shows depreciation expense of $750. Balances for the company's current asset and current liability accounts at the beginning and end of the year are as follows:

End of year

Beginning of year

Cash

$220

$150

Accounts receivable

170

320

Inventory

550

650

Prepaid expenses

75

50

Accounts payable

140

180

Income taxes payable

6

12

When the statement of cash flows is prepared, Big Horn Company will show operating cash flows of

a.

$2,629.

b.

$3,379.

c.

$4,129.

d.

$4,229.

e.

none of the above

Consider the following transactions:

Paid interest with cash $10
Paid cash dividends $45
Sold common stock for cash $1,200
Purchased treasury stock for cash $360
Sold bonds for cash $800

What amount will be reported as the net cash inflow from financing activities?

a.

$850

b.

$1,560

c.

$1,595

d.

$1,685

e.

none of the above

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