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Complete the statement of cash flows using the information provided. ABC Company's Income statement and comparative balance sheets for 2019 and 2020 are as follows:
Complete the statement of cash flows using the information provided.
ABC Company's Income statement and comparative balance sheets for 2019 and 2020 are as follows: Other Information: The company declared and paid $23,000 in cash dividends during 2020 PPE was purchased for cash in 2020. Additional common stock was issued for cash. Investments costing $11,000 and carried at $10,000 were sold for cash at a $2,000 realized loss in 2020. Requirements: 1. Identify the change in account balances for 2020 and the effect that change will have on Cash. 2. Compute ABC's operating cash flow for 2020 using the indirect method. 3. Compute ABC's operating cash flow for 2020 using the direct method. ABC Company's Income statement and comparative balance sheets for 2019 and 2020 are as follows: Other Information: The company declared and paid $23,000 in cash dividends during 2020 PPE was purchased for cash in 2020. Additional common stock was issued for cash. Investments costing $11,000 and carried at $10,000 were sold for cash at a $2,000 realized loss in 2020. Requirements: 1. Identify the change in account balances for 2020 and the effect that change will have on Cash. 2. Compute ABC's operating cash flow for 2020 using the indirect method. 3. Compute ABC's operating cash flow for 2020 using the direct method Step by Step Solution
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