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Problem 3: Statement of Cash Flows Carter Company has the following income statement and balance sheet for 12-31- 21: Carter Company Income Statement For
Problem 3: Statement of Cash Flows Carter Company has the following income statement and balance sheet for 12-31- 21: Carter Company Income Statement For the year ending December 31, 2021 Sales 1,500 Cost of Goods Sold 600 Gross Profit 900 Operating Expenses 700 Depreciation Expense Operating Income 195 Gain on Sale of Asset 5 Net Income 200 Carter Company Balance Sheet As of December 31, 2021 and 2020 2021 2020 Cash 250 100 Accounts Receivable 150 50 Inventory 25 50 Total Current Assets 425 200 Equipment 95 100 Accumulated Depreciation (25) (25) Total Assets 495 275 Accounts Payable (current) 100 75 Bonds Payable (long-term) 120 100 Total Liabilities 220 175 Common Stock 10 10 Retained Earnings 265 90 Total Equity 275 100 Total Liabilities and Equity 495 275 ACCT 305 CHAPTER 19-21 EXAM Additional Relevant Information Equipment that cost $20 with accumulated depreciation of $5 was sold for $20. The company borrowed $20 via a bond payable. The company paid $15 for new equipment. The company declared and paid a $25 dividend. Required Questions What is the cash flow from operating activities? What is the cash flow from investing activities? What is the cash flow from financing activities? What is the net cash increase? Does your last answer match the increase in cash shown on the balance sheet? Answers
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