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During a recent year, the Corp. reported net income of $25,000. The company also reported the following activities: a. Purchased equipment for $6,000 in cash.

During a recent year, the Corp. reported net income of $25,000. The company also reported the following activities:

a. Purchased equipment for $6,000 in cash.

b. Issued common stock for $1,000 in cash

c. Depreciation of equipment was $9,000 for the year

More information is presented below.

Current year

Prior year

Assets

Cash and cash equivalents

$84,000

$48,700

Accounts receivable

53,600

50,000

Inventory

39,600

39,000

Prepaid expenses

5,500

15,000

Equipment

206,000

200,000

Accumulated depreciation

(126,700)

(117,700)

Liabilities

Current liabilities

Accounts payable

$48,000

$49,000

Accrued liabilities

44,000

42,000

Stockholders equity

Common stock

10,000

9,000

Retained earnings

160,000

135,000

Q: Compute cash flows from operating activities?

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