Both mia and mario produce only the item in which they have a comparative advantage. then they trade one pasta for one pizza. be
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<h2> Whispering Winds Corp.</h2>Statement of Cash Flows (Indirect Method) 2017
Cash flow from operating activities:
net income $161,100
Adjustments to reconcile net income:
+ depreciation expense $40,160
+ loss on sale of equipment $2,020
Change in current assets:
- increase in accounts receivable ($40,050)
- increase in inventory ($44,310)
+ increase in prepaid expenses $1,980
Change in current liabilities:
+ increase in accounts payable $2,580
- decrease in accrued exp. payable ($10,070)
Net cash provided by operating activities $113,410
Cash flow from investing activities:
purchase of new equipment ($164,450)
sale of old equipment $33,650
Net cash provided by investing activities ($130,800)
Cash flow from financing activities:
Proceeds from issue of new stocks $171,150
- redemption of bonds ($49,180)
- dividends paid ($85,680)
Net cash provided by financing activities $36,290
<u>Net increase in cash $18,900</u>
