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2016 2015 300,000 200,000 100, 000 ( increase ) Cash Accounts receivable, net 840,000 580,000 260,000 ( increase ) Merchandise inventory 660,000 420,000 100,000 50,000

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2016 2015 300,000 200,000 100, 000 ( increase ) Cash Accounts receivable, net 840,000 580,000 260,000 ( increase ) Merchandise inventory 660,000 420,000 100,000 50,000 290, DON 100,OC (increase) Prepaid expenses Long-term investment 80,000 increak 1, 130,000 600,000 80,000 Property, plant and equipment 530,000 increase increase Accumulated depreciation 110,000 50,000 60, 000 Accounts payable 530,000 440,000 90, 000 increase 130,000 10, 000 increase Accrued expenses 140,000 Dividends payable 70,000 O 70, 00 increase 500.000 increase Note payable-long term debt 500, C0 Share capital 1,200,000 900,000 300,000 increak 560,000 330,000 230,000 increase Retained earnings Net credit sales 6,400,000 4,000,000 2, 400, Ow increase Cost of goods sold 5,000,000 3,200,000 11800, Ow increase Increase Expenses 1,000,000 520,000 400, Ow incream Net income 400,000 280,000 120/ 000 increase All accounts receivable and accounts payable relate to trade merchandise. Accounts payable are recorded net and always paid to take all of the discounts allowed. The allowance for doubtful accounts at the end of 2016 was the same as at the end of 2015. No receivables were charged against the allowance during 2016. The proceeds from the note payable were used to finance a new store building. Share capital was sold to provide additional working capital. Required: Prepare the statement of cash flow in 2016

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