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O'hare Company - 24 Jan, 2012 Problem 8-4 O'hare Company's only asset as of January 1, 2010, was a limousine. During 2010, only the following
O'hare Company - 24 Jan, 2012
Problem 8-4
O'hare Company's only asset as of January 1, 2010, was a limousine. During 2010, only the following three transactions occurred.
Services of $100,000 were provided on account
All accounts receivable were collected.
Depreciation on the limousine was $15,000.
Required
1.- Develop an income statement for O'hare for 2010.
2.- Determine the amount of the net inflow for O'hare for 2010.
3.- Explain why O'hare's net income does not equal net cash inflow.
4.- If O'hare developed a cash flow statement for 2010 using the indirect method, what amount would appear in the category titled Cash Flow from Operating Activities?Step by Step Solution
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