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Match the Following

Question 81

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Match the following:

Premises:
Reconciliation
The Baxter Company had the following current account balances.
Beginning Ending Beginning Ending
Cash $ 300 $935 Accounts Payable $1,400 $1,750
Accounts Receivable 4,250 5,375 Accruals 615 875
Inventory 8,200 7,050
Current Assets 12,750 $13,360 Current Liabilities $2,015 $2,625


What change in the current accounts would be listed under Operating Activities on a Statement of Cash Flows?
Responses:
$635
Proceeds from the sale of old machinery
$13,360
($13,360)
($635)
Change in cash balance
Sale of new 30-year bonds
Depreciation expense as a noncash item

Correct Answer:

$635
Proceeds from the sale of old machinery
$13,360
($13,360)
($635)
Change in cash balance
Sale of new 30-year bonds
Depreciation expense as a noncash item
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