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XYZ Inc presents the following for the year ended December 31, 2040: Description Amount ($) Sales 25,200,000 Cost of goods sold 15,120,000 Selling expenses 2,520,000

XYZ Inc presents the following for the year ended December 31, 2040:

Description

Amount ($)

Sales

25,200,000

Cost of goods sold

15,120,000

Selling expenses

2,520,000

Administrative expenses

630,000

Interest expense

360,000

Gain on sale of vehicle

190,000

Income tax expense

460,000

Additional information:

  1. Depreciation of $690,000 is included in selling expenses and $230,000 in administrative expenses.
  2. A vehicle was sold for $3,200,000 cash. This vehicle cost $3,400,000 and had a carrying value of $3,000,000.
  3. New vehicle was purchased for $1,700,000 cash.
  4. Dividends of $920,000 were declared and paid.
  5. Purchased 3,800 treasury shares for $380,000.

Requirements:

  1. Calculate the cash flows from operating activities.
  2. Determine the cash flows from investing activities.
  3. Compute the cash flows from financing activities.
  4. Identify the ending cash balance.
  5. Reconcile net income to net cash provided by operating activities.

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