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The accounting records of Laurent Company provided the following data: Statement of Comprehensive Income For year ended 31 December 20x8 Sales Cost of goods sold

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The accounting records of Laurent Company provided the following data: Statement of Comprehensive Income For year ended 31 December 20x8 Sales Cost of goods sold Depreciation expense Operating expenses Net earnings and comprehensive income $ 900,000 (540,000) (12,000) (192, 000) $ 156,000 Statement of Financial Position At 31 December 20x8 20x7 Debits Cash $102,000 $ Accounts receivable 54,000 57,000 Inventory 75,000 60,000 Investment, long term 9,000 Capital assets 279,000 180,000 Total debits $510,000 $306,000 Credits Bank overdraft $ $ 15,000 Accumulated depreciation 42,000 30,000 Accounts payable 36,000 18,000 Short-term bank loan 12.ee 9.000 So $102,eee $ 54,000 57, eee 75, eee 6e, eee 9, eee 279,000 180, eee $518,eee $306, eee DUAL Cash Accounts receivable Inventory Investment, long term Capital assets Total debits Credits Bank overdraft Accumulated depreciation Accounts payable Short-term bank loan Notes payable, long term Common shares Retained earnings Total credits $ $ 15,eee 42,eee 30,000 36,000 18,000 12, eee 9, eee 108,000 60,000 240,000 15e, eee 72, eee 24, eee $510, eee $306,000 Other information: a. Paid a $24,000 long-term note payable by issuing common shares. b. Purchased capital assets that cost $99.000: gave a $72,000 long-term note payable and paid $27.000 cash. c. Sold the long-term investment at cost, for cash. d. Assume that unexplained differences in asset, liability, and equity accounts flow from logical sources. Required: 1. Prepare the SCF, using the two-step indirect method of presentation for the operating activities section (Deductible Cash outflows should be indicated with minus sign.) LAURENT COMPANY Statement of Cash Flows For the year 31 December 20X8 Operating activities: Net earnings $ 156,000 Non-cash items Add: Depreciation 12,000 168,000 Changes to working capital: Add: Decrease in accounts receivable 3,000 Add: Increase in accounts payable 18,000 Less. Increase in inventory (15,000) $ 174,000 Investing activities: Sold long-term investment 9,000 197 mil Check my [Paid cash dividend 69,000 Net change in cash Opening cash Closing cash $ 0 2. Prepare the operating activities section of the SCF using the direct method (Deductible amounts and Cash outflows should be Indicated with minus sign.) LAURENT COMPANY Partial Statement of Cash Flows For the year 31 December 20XB Operating activities: Cash collected from customers Cash paid to suppliers

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