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A companys cash flow statement for the year ended December 31, 2023, includes the following information: Net Income: $1,800,000 Depreciation Expense: $400,000 Increase in Accounts
A company’s cash flow statement for the year ended December 31, 2023, includes the following information:
- Net Income: $1,800,000
- Depreciation Expense: $400,000
- Increase in Accounts Receivable: $100,000
- Decrease in Inventory: $50,000
- Increase in Accounts Payable: $75,000
- Purchase of Equipment: $500,000
- Proceeds from Issuance of Long-term Debt: $1,000,000
- Payment of Dividends: $300,000
- Repayment of Short-term Borrowings: $200,000
a. Calculate the Net Cash Provided by Operating Activities using the indirect method. b. Determine the Net Cash Used in Investing Activities and explain its implications for capital expenditures. c. Analyze the Financing Activities section and discuss its impact on the company’s capital structure.
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