Construct a schedule showing the operating cash flows with the use of indirect method.

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A company made a profit for the year of $18,750, after accounting for depreciation of $1,250. During the year, non-current assets were purchased for $8,000, receivables increased by $1,000, inventory decreased by $1,800 and payables increased by $350. The increase in cash and bank balances during the year was ........................................

Answer 1

Question

Chapter 14, Problem 54P

To determine

Construct a schedule showing the operating cash flows with the use of indirect method.

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