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Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash. $12,000 of liabilities, and $5,000 of retained earnings. During the
Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash. $12,000 of liabilities, and $5,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account Increased by $7,550. The bookkeeper reported that Pratt paid cash expenses of $26,000 and paid a $2.000 cash dividend to stockholders, but she could not find a record of the amount of cash revenue that Pratt received for performing services Pratt also paid $3,000 cash to reduce the liability owed to a bank, and the business acquired $4,000 of additional cash from the issue of common stock. Assume all transactions are cash transactions d. Prepare the Year 2 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) PRATT CORP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Net cash flow from operating activibes Cash flows from investing activities: Cash flows from financing activities Net cash flow from financing activities Ending cash balance
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