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Business Applications Case Analyzing the cash flow effects of different types of expenses
The following income statements are available for Hopi, Inc., and Zuni, Inc., for 2011.
Hopi, Inc.
Zuni, Inc.
Revenue
$100,000
Wages expense
70,000
55,000
Depreciation expense
10,000
25,000
Net earnings
$ 20,000
Required
Assume that neither company had beginning or ending balances in its Accounts Receivable or Wages Payable accounts. Explain which company would have the lowest net cash flows from operating activities for 2011.
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cash flows from operating activities indirect methodfor the year ended june 30 2010 net income for soak company was
Post the transactions to T accounts. Be sure to enter the beginning cash and common stock balances and prepare the income statement through gross profit for the month of April 2012.
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