Question
The following transactions occurred during FY 2016 (January 1, to December 31, 2017): - Net income: $ 3,000,000 - Depreciation & Amortization for the year:
The following transactions occurred during FY 2016 (January 1, to December 31, 2017): - Net income: $ 3,000,000 - Depreciation & Amortization for the year: $250,000 - Impairment loss for the year: $125,000 - Gain on Machinery disposal: $ 100,000 - Loss on a sale of a small equipment: $50,000 - Provisions for warranty expenses created: $200,000 - Reversal (release) on warranty expenses: $50,000 - The working capital accounts are as follow: Accounts As of January 1 As of December 31 Marketable securities 25,000 45,000 Account receivables 300,000 450,000 Inventories 120,000 80,000 Account payables 200,000 180,000 Notes Payables to Bank 75,000 100,000 Wages Due 100,000 180,000 - Looser LLC has issued 120,000 shares @ 15 per value - New loan from Wells Fargo: $300,000 - Dividends paid: $150,000 - Acquisitions of a new building: $ 250,000 - Repairs work on the new building before use: $25,000 Tasks:(i) compute the cash flows from operations under the indirect method (ii) compute the cash flows from financing activities (ii) compute the cash flows from investing activities (iv) Prepare the Net cash flows.
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