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Dive in Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement, as well as additional information,
Dive in Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement, as well as additional information, are presented below. Additional Data: a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $950 cash in exchange for the company's stock. 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted Required: should be indicated by a minus sign.) DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in current assets and current liabilities Increase in Accounts Receivable Increase in Prepaid Rent Decrease in Salaries and Wages Payable Net Cash Used in Operating Activities Cash Flows from Financing Activities: Purchase of intangible and other assets
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