Question
On July 24, 1909 Duquesne Amusements and Supply Company in Pittsburghowned by brothers Harry, Albert, Jack, and Sam Warnersold all its assets to General Film
On July 24, 1909 Duquesne Amusements and Supply Company in Pittsburghowned by brothers Harry, Albert, Jack, and Sam Warnersold all its assets to General Film Corporation for $52,000. General Film paid the Warners $10,000 in cash, $12,000 in preferred stock, and signed a four-year note for the balance to be paid in equal monthly cash installments beginning August 1, 1909. The Warner brothers used the proceeds from the sale to launch their own film production and distribution company, eponymously named Warner Brothers. Based on this transaction alone, had General Film Corporation been required during that era to file a cash flow statement (using the guidelines we use today), how much would the company have reported as net cash from Operating Activities on Dec. 31, 1909?
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