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EFG Ltd provided the following financial data: Net Income: 120,000 Depreciation Expense: 30,000 Increase in Accounts Receivable: 10,000 Decrease in Accounts Payable: 5,000 Increase in
EFG Ltd provided the following financial data:
- Net Income: £120,000
- Depreciation Expense: £30,000
- Increase in Accounts Receivable: £10,000
- Decrease in Accounts Payable: £5,000
- Increase in Inventory: £7,000
- Purchase of Equipment: £20,000
- Issuance of Common Stock: £50,000
Requirements:
- Prepare the operating activities section of the cash flow statement using the indirect method.
- Calculate the net cash provided by (used in) operating activities.
- Determine the net increase (decrease) in cash for the period.
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