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Question 3. C Company's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below: Cash ($13,000) Accounts

Question 3. C Company's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below:

Cash

($13,000)

Accounts receivable

16,000

Inventory

21,000

Prepaid expenses

(8,000)

Long-term investments

30,000

Property, plant and equipment

60,000

Accumulated depreciation

36,000

Accounts payable

(21,000)

Accrued expenses

14,000

Income taxes payable

42,000

Bonds payable

(50,000

Common stock

20,000

Retained earnings

65,000

The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend. The beginning and ending cash balances were $20,000 and $7,000, respectively.

Required: Prepare a statement of cash flows using the indirect method.

Question 4. Net income for the current year was $92,150. Depreciation expense was $26,500. The balances of the current asset and current liability accounts at the beginning and end of the year are listed below

Particulars

End of Year

Beginning of Year

Increase (Decrease)

Add or Deduct

a) Cash

61,500

56,250

b) Accounts receivable

81,250

74,100

c) Inventories

103,000

81,000

d) Prepaid expenses

6,100

7,600

e) Accounts payable

49,400

51,200

f) Salaries payable

6,500

5,200

Required: Prepare the cash flows from operating activities section of the statement of cash Net income for the current year was $92,150. Depreciation expense was

$26,500. The balances of the current asset and current liability accounts at the beginning and end of the year are listed below flows using the indirect method.

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