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You purchased a $12,000 equipment with a loan. Installation and freight fees totalling $800 were paid with cash. The cost of debt is 7%, for
You purchased a $12,000 equipment with a loan. Installation and freight fees totalling $800 were paid with cash. The cost of debt is 7%, for 5 years. Interest and principal are payable at the beginning of the month but the outstanding balance is calculated at the end of the month. Construct a statement of cash flow if net income (after interest and taxes) is $1700 and depreciation expense is $1800
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