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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 TitleBeginning BalanceEnding BalanceDebitsCredits
    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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