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Suppose your company reports $170 of net income and $42 of cash dividends paid, and its comparative balance sheet indicates t
During the period, Teens Trends sold some excess equipment at a loss. The following information was collected from the compa
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Answer #1

Answer 1 :

Net Income $170
Increase in Accounts Receivable -102
Decrease in Inventory 108
Increase in Salaries and Wages Payable 48
Dividends paid [AS per US GAAP, its a part of financing activities] 0
Net Cash Flow from Operating Activities $224

Answer 2 :

a Cost of equipment sold : Beginning equipment - Ending equipment = $12,500 - $6,500 $6,000
b. Accumulated Depreciation Equipment : Beg. Acc . Dep + Dep for the year - Ending. Acc . Dep = $2,000 + $500 - $2,200 $300
c. Cash Received from Sale : Cost of equipment sold - Acc . Dep - Loss on sale of equipment = $6,000 - $300 - $4,000 $1,700
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