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Spirit Company, a merchandiser, recently completed its 2010 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s balance sheet and income statement follow:
A. What is the net cash flows provided (used) by investing activities?
B. What is the amount of dividends declared and distributed in 2010?
C. What is the net cash flows provided (used) by financing activities?
D. Determine the cash received by Spirit for the equipment sold in item C above.(It might mean B but not sure)
A. What is the net cash flows provided (used) by investing activities?
B. What is the amount of dividends declared and distributed in 2010?
C. What is the net cash flows provided (used) by financing activities?
D. Determine the cash received by Spirit for the equipment sold in item C above.(It might mean B but not sure)
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