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The following information is given for K Corp: Net income $40,000 Purchase of equipment for cash 30,000 Decrease in accounts receivable 5,000 Increase in supplies
The following information is given for K Corp:
Net income | $40,000 |
Purchase of equipment for cash | 30,000 |
Decrease in accounts receivable | 5,000 |
Increase in supplies on hand | 2,000 |
Sale of common stock | 20,000 |
Depreciation expense | 6,000 |
Payment of dividends | 6,000 |
Increase in accounts payable | 5,000 |
The indirect method is used for preparation of the statement of cash flows. The beginning cash balance is $23,000.
Calculate the following items with the information provided above.
1. Cash flow from operating activities
2. Cash flow from investing activities
3. Cash flow from financing activities
4. The net change in cash
5. The ending balance in the cash account
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