Question
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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