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Mary Walker, president of Rusco Company, considers $27,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements,
Mary Walker, president of Rusco Company, considers $27,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $22,000 in cash was available at the end of this year. Because the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. The following additional information is available for this year. a. The company paid a cash dividend. b. Equipment costing $104,000 with accumulated depreciation of $47,000 was sold for $49,600. c. Long-term investments costing $44,000 were sold for $67,500. d. The company did not retire any bonds payable or repurchase any of its common stock. Determine the net cash provided by (used in) operating activities using the indirect method for this year. Note: Cash outflows and amounts to be deducted should be indicated with a minus sign. Prepare a statement of cash flows for this year. Note: Cash outflows and amounts to be deducted should be indicated with a minus sign
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