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Amazing Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling $45,000 and its total current liabilities totaling $33,000. At the end of
Amazing Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling $45,000 and its total current liabilities totaling $33,000. At the end of the year, these same current assets totaled $44,000, while its total current liabilities totaled $27,000. Net income for the year was $12,000. Included in net income were a $6,000 loss on the sale of land and depreciation expense of $10,000. Show how Amazing should report cash flows from operating activities for 2021. The company uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.)
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