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Chapter 5, Question 6 Entries to be made Depreciation for the year Equipment purchases for the year Dividends paid to Stockholders for the year $50,000
Chapter 5, Question 6 Entries to be made Depreciation for the year Equipment purchases for the year Dividends paid to Stockholders for the year $50,000 $21,000 $30,000 Tres Amigos Mexican Cantina Year-end Statement of Cash Flows NET CASH FLOW FROM OPERATING ACTIVITIES Net Income Adjustments Made To Reconcile Net Income To Net Cash Flows From Operating Activities $75,000 Depreciation Gain on Sale of Investments Decrease in Accounts Receivable Increase in Inventory Increase in Accounts Payable Increase in Accrued Payroll Decrease in Income Taxes Payable 10,000 4,000 2,000 1,500 500 1,000 43,000 NET CASH FLOW FROM OPERATING ACTIVITIES $118,000 INVESTING ACTIVITIES Sale of Investments Purchase of Investments Purchase of Equipment 5,000 15,000 NET CASH FLOW USED IN INVESTING ACTIVITIES $31,000 FINANCING ACTIVITIES Payment of long-term debt Dividends paid to stockholders 26,000 NET CASH FLOW USED IN FINANCING ACTIVITIES Net change (+/-) in cash during year Cash at the beginning of year Cash at the end of year 14000 a. What was the amount of the operation's net change in cash during the year? Answer: b. What is the total amount of the operation's cash at the end of the year
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