Nathan Herrmann has completed the basic format to be used in preparing the statement of...
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Accounting
Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants. Listed below in random order are line items to be included in the statement of cash flows.
Purchase of equipment
$ 220,000
Increase in inventory
30,000
Increase in prepaid rent
10,000
Payment of dividends
40,000
Depreciation expense
20,000
Increase in accounts receivable
60,000
Increase in accounts payable
10,000
Loss on sale of land
7,000
Net income
70,000
Repayment of notes payable
50,000
Cash received from the sale of land
3,000
Issuance of common stock
250,000
Prepare the statement of cash flows for CEO Consultants using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.)
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