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ZAB Inc presents the following for the year ended December 31, 2032: Description Amount ($) Sales 15,600,000 Cost of goods sold 9,360,000 Selling expenses 1,560,000
ZAB Inc presents the following for the year ended December 31, 2032:
Description | Amount ($) |
Sales | 15,600,000 |
Cost of goods sold | 9,360,000 |
Selling expenses | 1,560,000 |
Administrative expenses | 390,000 |
Interest expense | 200,000 |
Gain on sale of vehicle | 110,000 |
Income tax expense | 300,000 |
Additional information:
- Depreciation of $450,000 is included in selling expenses and $150,000 in administrative expenses.
- A vehicle was sold for $1,600,000 cash. This vehicle cost $1,800,000 and had a carrying value of $1,460,000.
- New vehicle was purchased for $900,000 cash.
- Dividends of $600,000 were declared and paid.
- Purchased 2,200 treasury shares for $220,000.
Requirements:
- Calculate the cash flows from operating activities.
- Determine the cash flows from investing activities.
- Compute the cash flows from financing activities.
- Identify the ending cash balance.
- Reconcile net income to net cash provided by operating activities.
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