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Question:
The Dickinson Company reported total income of $155,000 for the present year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. Balances of the present asset and current liability accounts at the starting and end of the year are as follows:
End of Year Beginning of Year
Cash $20,000 $15,000
Accounts receivable 19,000 32,000
Inventories 50,000 65,000
Accounts payable 12,000 18,000
Instructions
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