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3 years ago

The following is a list of items for Witts Company's 2016 statement of cash flows:

Business

1 answer:

chubhunter [2.5K]3 years ago

3 0

Answer and Explanation:

The preparation of the statement of cash flows is presented below:

Cash flows from operating activities

Net income $13,500

Add: depreciation expense $8,700

Add: loss on sale of equipment $2,200

Less: increase in inventory $3,900

Less: increase in prepaid expense -$800

Add: decrease in account receivable $1,700

Net cash provided by operating activities $19,900

Cash flows from investing activities

receipt from sale of equipment, $2,700

Less: payment for purchase of building, $29,000

Net cash used by investing activities -$26,300

Cash flows from financing activities

receipt from issuance of bonds, $8,000

Less: payment of dividends, $5,200

Net cash provided by financing activities $2,800

Net decrease in cash -$3,600

Add: opening cash balance $10,200

Ending cash balance $6,600

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Answer:

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3 years ago

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4 years ago

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