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a. Prepare the operating activities section of the cash flow statement for DEF Ltd. using the indirect method with the following information: Net Income: $200,000

a. Prepare the operating activities section of the cash flow statement for DEF Ltd. using the indirect method with the following information:

  • Net Income: $200,000
  • Depreciation Expense: $50,000
  • Increase in Accounts Receivable: $30,000
  • Increase in Accounts Payable: $20,000 b. Construct the investing activities section of the cash flow statement for DEF Ltd. based on the given data:
  • Purchase of Equipment: $100,000
  • Sale of Marketable Securities: $50,000 c. Prepare the financing activities section of the cash flow statement for DEF Ltd. with the following details:
  • Issuance of Long-term Debt: $150,000
  • Dividends Paid: $40,000
Repayment of Short-term Borrowings: $20,000

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