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Answer format***** The financial statements of Clearwater Inc. appear below: CLEARWATER INC. Comparative Balance Sheet December 31 The following additional data were provided: 1. During
Answer format*****
The financial statements of Clearwater Inc. appear below: CLEARWATER INC. Comparative Balance Sheet December 31 The following additional data were provided: 1. During the year, equipment was sold. This equipment cost $75,000 originally and had a carrying amount of $32,000 at the time of sale. 2. During the year, replacement equipment was purchased for $25,000 cash. 3. All depreciation expense is in the operating expenses category. 4. All sales and purchases are on account. 5. Accounts payable pertain to merchandise suppliers. 6. All operating expenses except for depreciation were paid in cash. Instructions a) Prepare a cash flow statement for Clearwater Inc., using the direct method or indirect method. ***SHOW YOUR WORK FOR PARTIAL MARKS!!!*** FS TITLE HERE Operating Activities Cash provided by (used) in operating activities Investing Activities Cash provided by (used) in investing activities Financing Activities Cash provided by (used) in operating activities Investing Activities Cash provided by (used) in investing activities Financing Activities Cash provided by (used) in financing activities Change in cash Opening cash Ending cashStep by Step Solution
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