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Account Title Beginning Balance Ending Balance Debits Credits Cash $80,000 $75,000 $45,000 $50,000 Accounts Receivable $90,000 $85,000 $50,000 $55,000 Inventory $100,000 $95,000 $55,000 $60,000 Prepaid
Account Title Beginning Balance Ending Balance Debits Credits Cash $80,000 $75,000 $45,000 $50,000 Accounts Receivable $90,000 $85,000 $50,000 $55,000 Inventory $100,000 $95,000 $55,000 $60,000 Prepaid Expenses $30,000 $35,000 $25,000 $30,000 Equipment $300,000 $310,000 $60,000 $70,000 Accounts Payable $55,000 $60,000 $45,000 $50,000 Notes Payable $40,000 $35,000 $30,000 $25,000 Common Stock $200,000 $220,000 $20,000 $40,000 Retained Earnings $250,000 $270,000 $60,000 $80,000 Sales Revenue - - $500,000 - Cost of Goods Sold - - $300,000 - Rent Expense - - $30,000 - Utilities Expense - - $15,000 - Salary Expense - - $50,000 - -------------------------- ----------------------- -------------------- ------------- ------------- Total - - $1,655,000 $1,845,000 Requirements:
- Prepare a statement of cash flows using the direct method.
- Analyze the cash flow activities of the company.
- Discuss any significant changes in cash balances during the period.
- Provide recommendations for cash flow management based on the analysis.
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