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Use the following information on end of year account balances (as of December 31,2019) for New Freedom Clinic to construct its balance sheet, keeping in
Use the following information on end of year account balances (as of December 31,2019) for New Freedom Clinic to construct its balance sheet, keeping in mind the accounting identity (assets = liabilities + equity): For each of the following, indicate whether the financial transaction represents a source of cash (i.e. increases the cash available to the organization) or a use of cash (i.e. decreases the cash available to the organization): A. Payment of accrued salary and benefits to employees B. Payment to reduce organizational long term debt C. Purchase of inventory for future use D. Securing a long-term equity line of credit to increase net working capital E. Increase in accounts payable F. Increase in accumulated depreciation G. Purchase of equipment for long term use H. Increase in accounts receivables Use the following information on end of year account balances (as of December 31,2019) for New Freedom Clinic to construct its balance sheet, keeping in mind the accounting identity (assets = liabilities + equity): For each of the following, indicate whether the financial transaction represents a source of cash (i.e. increases the cash available to the organization) or a use of cash (i.e. decreases the cash available to the organization): A. Payment of accrued salary and benefits to employees B. Payment to reduce organizational long term debt C. Purchase of inventory for future use D. Securing a long-term equity line of credit to increase net working capital E. Increase in accounts payable F. Increase in accumulated depreciation G. Purchase of equipment for long term use H. Increase in accounts receivables
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