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  3. chapter 4 statement of cash flows 4.10. the follow

CHAPTER 4 Statement of Cash Flows 4.10. The following income statement and balance sheet information...

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Accounting

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CHAPTER 4 Statement of Cash Flows 4.10. The following income statement and balance sheet information are available for two firms, Firm A and Firm B (a) Calculate the amount of dividends Firm A and Firm B paid using the information given. (b) Prepare a statement of cash flows for each firm using the indirect method. (c) Analyze the difference in the two firms. Income Statement for Year Ended December 31, 2015 Firm A Firm B Sales Cost of goods sold $1,000,000 700,000 300,000 $1,000,000 700,000 300,000 Gross profit Other expenses Selling and administrative Depreciation Interest expense 115,000 30,000 5,000 150,000 75,000 S 75,000 S 75,000 120,000 10,000 20,000 150,000 75,000 Earnings before taxes Income tax expense Net Income

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