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A companys cash flow statement for the year ended December 31, 2023, presents the following information: Cash Flows from Operating Activities Amount ($) Net Income

A company’s cash flow statement for the year ended December 31, 2023, presents the following information:

Cash Flows from Operating Activities

Amount ($)

Net Income

$1,200,000

Depreciation Expense

$300,000

Increase in Accounts Receivable

$80,000

Decrease in Inventory

($40,000)

Increase in Accounts Payable

$60,000

Interest Expense Paid

($100,000)

Income Tax Paid

($250,000)

Net Cash Provided by Operating Activities

$1,250,000

Cash Flows from Investing Activities

Amount ($)

Purchase of Equipment

($500,000)

Proceeds from Sale of Investments

$100,000

Net Cash Used in Investing Activities

($400,000)

Cash Flows from Financing Activities

Amount ($)

Proceeds from Issuance of Long-term Debt

$800,000

Repayment of Short-term Borrowings

($200,000)

Payment of Cash Dividends

($300,000)

Net Cash Provided by Financing Activities

$300,000

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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