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    Calculating overall change in cash

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    Calculate overall change in cash Please review the steps I used in preparing the attached problem.

    "Use the following information to determine your client's overal change
    in cash." Accounts Receivable ($5,000)
    Supplies $1,000
    Inventory $3,000
    Prepaid Rent ($2,000)
    Fixed Assets $18,000
    Accumulated Depreciation $4,000
    Accounts Payable $3,000
    Accrued Expenses ($1,000)
    Notes Payable $5,000
    Bonds Payable ($2,000)
    Common Stock $1,000
    Net Income $17,000
    Dividends Paid $3,000

    CASH FROM OPERATING ACTIVITIES

    Net income for the year 2008 Step 1 $17,000
    Add:
    Prepaid Rent ($2,000)

    office supply decreased $1,000
    increase in accrrued expenses ($1,000)

    Step 2 ($2,000)

    Less:
    increase in accounts receivable ($5,000)
    decrease in accounts payable $3,000
    Accumulated Depreciation $4,000
    inventory decreased $3,000

    Step 3 $5,000

    CASH FROM OPERATIONS: $10,000

    CASH FROM FINANCING ACTIVITIES
    purchase of fixed assets ($18,000)

    CASH FLOW FROM INVESTING ACTIVITIES
    issue of shares $1,000
    repayment of bonds $2,000
    Notes Payable $5,000
    DIVIDEND PAID $3,000
    $11,000
    CHANGES IN OVERALL CASH $3,000

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    https://brainmass.com/business/cash/calculate-overall-change-cash-298051

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    Solution Summary

    The expert calculates the overall change in cash.

    $2.19

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