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The cash flow statement for a company for the year ended December 31, 2023, is presented as follows: Cash Flows from Operating Activities Amount ($)

The cash flow statement for a company for the year ended December 31, 2023, is presented as follows:

Cash Flows from Operating Activities

Amount ($)

Net Income

$1,500,000

Depreciation Expense

$400,000

Increase in Accounts Receivable

$60,000

Decrease in Inventory

($40,000)

Increase in Accounts Payable

$70,000

Interest Expense Paid

($120,000)

Income Tax Paid

($280,000)

Net Cash Provided by Operating Activities

$1,590,000

Cash Flows from Investing Activities

Amount ($)

Purchase of Equipment

($600,000)

Proceeds from Sale of Investments

$50,000

Net Cash Used in Investing Activities

($550,000)

Cash Flows from Financing Activities

Amount ($)

Proceeds from Issuance of Common Stock

$500,000

Repayment of Long-term Debt

($300,000)

Payment of Cash Dividends

($200,000)

Net Cash Provided by Financing Activities

$0

a. Calculate the Cash Flow from Operations using the indirect method. b. Determine the Net Cash Used in Investing Activities and explain its impact on the company’s cash position. c. Analyze the Financing Activities section and discuss its implications for the company’s capital structure and shareholder returns.

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