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Below is an example of an incorrectly prepared statement of cash flows. The descriptions of the activities are correct. Cash from operating activities Net Income
Below is an example of an incorrectly prepared statement of cash flows. The descriptions of the activities are correct. Cash from operating activities Net Income $ 60,000 Depreciation (4,000) Increase in accounts receivable (2,000) Increase in deferred tax liability (1,000) $ 53,000 Cash from investing activities Purchase of marketable securities $(48,000) Dividends paid 1,500 $(46,500) Cash from financing activities Increase in Short-term debt trade $ (500) Increase in Long-term debt bonds Payable (2,500) $ (3,000) Increase in cash $ 3,500 12. The correct cash flows from operating activities is: A) 65,500 B) 63,500 C) 53,500 D) none of the above 13. The correct cash flows from investing activities is: A) ($41,000) B) ($45,500) C) ($48,000) D) none of the above 14. The correct cash flows from financing activities is: A) ($4,500) B) $3,000 C) $1,000 D) none of the above 15. The correct change in cash for the year is: A) $4,000 B) $15,000 C) $16,500 D) none of the abov
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