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Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals. a. Cash used for purchase of office
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals. a. Cash used for purchase of office supplies, $2,400. b. Cash provided from consulting to customers, $50,600. c. Cash used for purchase of mining equipment, $83,000. d. Cash provided from long-term borrowing, $70,000. e. Cash used for payment of employee salaries, $25,000. f. Cash used for payment of office rent, $13,000. g. Cash provided from sale of equipment purchased in c. above, $23,500. Operating h. Cash used to repay a portion of the long-term borrowing in d. above, $45,000. i. Cash used to pay office utilities, $5,300. j. Purchase of company vehicle by borrowing $16,000. Cash Outflow Step 1: Next to each item above, label the transaction as one of the following: Financing, Investing, or Operating. Then, write down whether it is a Cash Inflow or Cash Outflow. The first one is done for you. Step 2: Use the information from above to prepare a Statement of Cash Flows for Goldman Incorporated for the year 2018 on the back of this paper.
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