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please answer step by step and not in excel. Balance sheet accounts for Decision Data. Inc. contained the following amounts at the end of years

image text in transcribedimage text in transcribedimage text in transcribedplease answer step by step and not in excel.

Balance sheet accounts for Decision Data. Inc. contained the following amounts at the end of years 1 and 2. Year 2 Year 1 $ 1,000 $ 7,000 20,500 14,000 35,000 25,000 2,500 4,000 16,000 20,000 175,000 160,000 $ 250,000 $ 230,000 Debits Cash... Acounts recievable, net.. Inventory.... Prepaid Insurance... Long-term investments. Plant and equipment.. Total debits.... Credits Accumulated depreciation... Accounts payable..... Accrued liabilities (CL).. Bonds payable (LTL).. Common stock.. Retained earnings.. Total credits... $ 36,000 $ 28,000 25,000 21,500 3,000 4,500 28,000 16,000 100,000 110,000 58,000 50,000 $ 250,000 $ 230,000 The company's income statement for year 2 is to the left: Sales..... $ 120,000 Cost of goods sold.. 75,000 Gross margin...... 45,000 Operating expenses. 30,000 Net income..... 15,000 There were no sales or retirements of equipment during year 2. Cash dividends totaling $7,000 were declared and paid during year 2, and depreciation expense totaled $8,000 for the year. Required: 1. Prepare a statement of cash flows for year 2. On page 3. 2. Prepare a brief explanation as to why cash declined so sharply during the year. | SCF Operating Activities 5 Adjustments to Convert Net Income to Cash Basis Cash by Operations Investing Activities Cash by Investing Activities Financing Activities Cash by Financing Activities Net Decrease in Cash Cash Balance for Year 1 Cash Balance for Year 2 1. Brief Explanation of why cash declined by $6,000: 2. Provide an example of a non-cash investing or financing activity. Where is this information reported on the Statement of Cash Flows (SCF)? Please be clear

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