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Question 1: [4 marks Presented below is the income statement of Grand Stores, Inc for 2019: Sales $380,000 Cost of goods sold 225,000 Gross profit

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Question 1: [4 marks Presented below is the income statement of Grand Stores, Inc for 2019: Sales $380,000 Cost of goods sold 225,000 Gross profit $155,000 Operating expenses 85.000 Income before income taxes 70,000 Income taxes 28.000 Net income $ 42,000 Notes: Operating expenses includes depreciation expense for the year for $16,700 Income taxes amount include $ 6000 related to financing activities. The company does not include any interest or dividend cash flows in the operating section of the statement of cash flows. In addition, the following information related balances of current assets and current liabilities shown in statement of financial position as follows: 31/12/2018 31/12/2019 Cash 1 2000 24000 Accounts receivable 15000 30000 Prepaid Insurance 20000 25000 Inventories 10000 Accounts payable 20000 33000 Interest expense payable 17000 12000 29400 Instructions Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows using the indirect method. Answer Grand Stores, Inc. Statement of Cash Flows (Indirect Method)

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