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Thank you. 1/ Ludwig Company's prepaid rent was $7,500 at December 31, 2020, and $14,500 at December 31, 2021. Ludwig reported rent expense of $19,000

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1/ Ludwig Company's prepaid rent was $7,500 at December 31, 2020, and $14,500 at December 31, 2021. Ludwig reported rent expense of $19,000 on the 2021 income statement. What amount would be reported in the statement of cash flows as rent paid using the direct method? $19,000, $12,000, $26,000, None of these answer choices are correct.

2/ S Company reported net income for 2021 in the amount of $410,000. The company's financial statements also included the following:

Increase in accounts receivable $ 85,000
Decrease in inventory 61,000
Increase in accounts payable 290,000
Depreciation expense 100,000
Gain on sale of land 145,000

What is net cash provided by operating activities under the indirect method?

  • $1,091,000.

  • $801,000.

  • $631,000.

  • $601,000.

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