• Prepare a cash flow statement for DEF Ltd. for the year ended December 31, 2023.
• Use the following data:
  • Net Income: $40,000
  • Depreciation Expense: $5,000
  • Increase in Accounts Receivable: $2,000
  • Increase in Accounts Payable: $1,000
  • Purchase of Equipment: $10,000
  • Issuance of Common Stock: $15,000
  • Payment of Dividends: $5,000

Question:

Using the given data, prepare the cash flow statement for DEF Ltd. for the year ended December 31, 2023. Classify the cash flows into operating, investing, and financing activities.