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During the year, Fastfax Company earned net income of $15,000. Beginning and ending balances for the year for selected accounts are as follows:
There were no financing or investing activities for the year. The above balances reflect all adjustments needed to adjust net income to operating cash flows.
Required:
Prepare a schedule of operating cash flows using the indirect method.
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The following data relate to the operations of Lim Corporation, a wholesale distributor of consumer goods: Current assets as of December 31:Cash $6,000 Accounts receivable $36,000 Inventory $9,800
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Write a one to two page single-spaced memo to the management of Shaw Company and include/attach your findings and compute and discuss the percentages of change in the profit and cash balance of the company due to the increase in the price.
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