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Question 5 (10 marks) Shown below are the balances of selected accounts of Fun Limited. 1 Jan 2021 31 Dec 2021 Accounts receivable $241,500 $273,000

Question 5 (10 marks)

Shown below are the balances of selected accounts of Fun Limited.

1 Jan 2021

31 Dec 2021

Accounts receivable

$241,500

$273,000

Inventory

$252,000

$262,000

Prepaid rent

$63,000

$67,200

Accounts payable

$221,550

$237,300

Salaries payable

$72,450

$66,150

Net sales

$3,097,500

Cost of goods sold

$1,627,500

Operation expenses (including depreciation of $94,500)

$367,500

Gain from sale of equipment

$10,000

Prepare the partial statement of cash flow for the year ended 31 December 2021, showing the computation of net cash from operating activities by indirect method.

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