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Power Corporation owns 75 percent of Surge Company's stock; no intercompany purchases or sales were made in 204. For the year, Power and Surge reported
Power Corporation owns 75 percent of Surge Company's stock; no intercompany purchases or sales were made in 204. For the year, Power and Surge reported sales of $390,000 and $250,000 and cost of goods sold of $160,000 and $118,750, respectively. Power's inventory increased by $28,000, but Surge's decreased by $14,000. Power's accounts receivable increased by $16,000 and its accounts payable decreased by $20,000 during 204. Surge's accounts receivable decreased by $13,000 and its accounts payable increased by $7,000. Required: Assuming there were no other cash flows from operations, using the direct method of computing cash flows from operating activities, compute the following
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