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Cash Flow Category Cash Inflow Cash Outflow Operating Activities $60,000 $40,000 Investing Activities $20,000 $30,000 Financing Activities $25,000 $35,000 Requirements: Prepare the cash flow statement
| Cash Flow Category | Cash Inflow | Cash Outflow |
|---|---|---|
| Operating Activities | $60,000 | $40,000 |
| Investing Activities | $20,000 | $30,000 |
| Financing Activities | $25,000 | $35,000 |
Requirements:
- Prepare the cash flow statement using the direct method.
- Analyze the company's cash flow position.
- Calculate the net cash flow from operating, investing, and financing activities.
- Discuss the importance of cash flow statement in financial analysis.
- Evaluate the company's liquidity and solvency based on the cash flow statement.
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
