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Maxter Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $67,000. At the end of the year, Maxter had a total of
Maxter Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $67,000. At the end of the year, Maxter had a total of $79,000 for these current assets. At the beginning of the year, it owed current liabilities of $49,000, and at year-end, current liabilities totaled $40,000. Net income for the year was $80,000. Included in net income was a $4,000 gain on the sale of land and depreciation expense of $10,000. Show how Maxter should report cash flows from operating activities for the year. The company uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Maxter Corporation Statement of Cash FlowsOperating Activities Section (Indirect Method) For the Year Ended Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided by (used for) operating activities
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