Question
Power Corporation owns 75 percent of Surge Companys stock; no intercompany purchases or sales were made in 20X4. For the year, Power and Surge reported
Power Corporation owns 75 percent of Surge Companys stock; no intercompany purchases or sales were made in 20X4. For the year, Power and Surge reported sales of $340,000 and $240,000 and cost of goods sold of $150,000 and $114,000, respectively. Powers inventory increased by $30,000, but Surges decreased by $14,000. Powers accounts receivable increased by $20,000 and its accounts payable decreased by $16,000 during 20X4. Surges accounts receivable decreased by $10,000 and its accounts payable increased by $8,000. a.) cash recieved from customers
b.) cash payments to suppliers
c.) cash flows from operating activities
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