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Award: 25.00 points Power Corporation owns 75 percent of Surge Company's stock, no intercompany purchases or sales were made in 20X4. For the year, Power
Award: 25.00 points Power Corporation owns 75 percent of Surge Company's stock, no intercompany purchases or sales were made in 20X4. For the year, Power and Surge reported sales of $390,000 and $240,000 and cost of goods sold of $150,000 and $114,000, respectively. Power's inventory increased by $26,000, but Surge's decreased by $16,000. Power's accounts receivable increased by $25,000 and its accounts payable decreased by $12,000 during 20X4. Surge's accounts receivable decreased by $10,000 and its accounts payable increased by $6,000. Required: Assuming there were no other cash flows from operations, using the direct method of computing cash flows from operating activities, compute the following: a. Cash received from customers b. Cash payments to suppliers c. Cash flows from operating activities
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