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Problem - The following additional information was obtained from Kennington's financial statements and auxiliary records for the year ended December 31, 20-2.
Acquired a new warehouse $90,000
Bought new warehouse equipment 60,000
Issued a note to the bank 30,000
Issued additional common stock:
Par value 30,000
Paid-in capital in excess of par 10,000
Declared and paid cash dividends 20,000
REQUIRED - Make a statement of cash flows for Kennington for the year ended December 31, 20-2.
What would be a reason for the company to do so? What areas of accounting and reporting could be compromised if this area is not properly managed?
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