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Clockwork Orange Corp.. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to
Clockwork Orange Corp.. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Clockwork Orange Corp. for 2011 and 2010 are provided below. BALANCE SHEETS INCOME STATEMENT For the Year Ended December 31,2011 Sales The following additional data were provided: Dividends for the year 2011 were $96,000. During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. All depreciation expense is in the selling expense category Prepare a direct method statement of cash flows (reconciliation extra credit)
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