Question
Amazon Financial Summary for 2022: Income Statement: Sales : $12,000,000 Cost of Goods Sold : $7,800,000 Operating Expenses : $2,500,000 (Depreciation: $300,000) Interest Expense :
Amazon Financial Summary for 2022:
Income Statement:
Sales: $12,000,000
Cost of Goods Sold: $7,800,000
Operating Expenses: $2,500,000 (Depreciation: $300,000)
Interest Expense: $90,000
Gain on Sale of Equipment: $75,000
Income Tax Expense: $220,000
Balance Sheet:
Item | 12/31/2022 | 12/31/2021 |
Cash | $1,200,000 | $800,000 |
Accounts Receivable | $500,000 | $450,000 |
Inventory | $900,000 | $810,000 |
Accounts Payable | $650,000 | $600,000 |
Additional Information:
Equipment sold for $250,000 (original cost $350,000, carrying value $230,000).
New equipment purchased for $200,000.
Dividends declared and paid: $350,000.
Treasury shares purchased: 1,500 shares for $150,000.
Requirements:
Compute cash flows from operating activities.
Compute cash flows from investing activities.
Compute cash flows from financing activities.
Compute the ending cash balance.
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