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LMN Inc presents the following for the year ended December 31, 2036: Description Amount ($) Sales 20,400,000 Cost of goods sold 12,240,000 Selling expenses 2,040,000
LMN Inc presents the following for the year ended December 31, 2036:
Description | Amount ($) |
Sales | 20,400,000 |
Cost of goods sold | 12,240,000 |
Selling expenses | 2,040,000 |
Administrative expenses | 510,000 |
Interest expense | 280,000 |
Gain on sale of vehicle | 150,000 |
Income tax expense | 380,000 |
Additional information:
- Depreciation of $570,000 is included in selling expenses and $190,000 in administrative expenses.
- A vehicle was sold for $2,400,000 cash. This vehicle cost $2,600,000 and had a carrying value of $2,120,000.
- New vehicle was purchased for $1,300,000 cash.
- Dividends of $760,000 were declared and paid.
- Purchased 3,000 treasury shares for $300,000.
Requirements:
- Calculate the cash flows from operating activities.
- Determine the cash flows from investing activities.
- Compute the cash flows from financing activities.
- Identify the ending cash balance.
- Reconcile net income to net cash provided by operating activities.
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