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Given the following information, prepare a Cash Flow Statement for Oracle Corporation for the year ending December 31, 2023: Net income: $3,500,000 Depreciation expense: $700,000
Given the following information, prepare a Cash Flow Statement for Oracle Corporation for the year ending December 31, 2023:
- Net income: $3,500,000
- Depreciation expense: $700,000
- Increase in accounts receivable: $350,000
- Decrease in inventory: $140,000
- Increase in accounts payable: $250,000
- Purchase of equipment: $1,800,000
- Issuance of common stock: $900,000
Required:
- Prepare the Cash Flow Statement using the indirect method.
- Discuss the significance of cash flow from operating activities.
- Explain how the Cash Flow Statement complements the Income Statement and Balance Sheet in financial analysis.
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