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The Following Data Is Supplied from the Comparative Balance Sheets

Question 141

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The following data is supplied from the comparative balance sheets and income statement information from Webber,Inc.Webber uses the indirect method to prepare its statement of cash flows.
 Webber, Inc.  Comparative Balance Sheets12/31/ Year 212/31/ Year 1 Cash $22,000$16,000 Accounts receivable 12,0008,000 Prepaid insurance 8,00010,000 Inventory 14,00016,000 Property, plant, and equipment 22,00016,000 Accumulated depreciation (6,000)(4,000) Total $72,00062,000 Accounts payable $20,000$16,000 Operating expenses payable 14,00016,000 Long term notes payable 10,00012,000 Common stock 18,00012,000 tained earnings 10,0006,000$72,000$62,000 Income Statement  Year 2 Revenue $70,000 Cost of goods sold 40,000 Gross margin 30,000 Depreciation expense 2,000 Other operating expense 18,000 Net income $10,000\begin{array}{c}\text { Webber, Inc. }\\\text { Comparative Balance Sheets}\\\begin{array}{lrr}&12 / 31 / \text { Year } 2&12 / 31 / \text { Year } 1\\\text { Cash } & \$ 22,000 & \$ 16,000 \\\text { Accounts receivable } & 12,000 & 8,000 \\\text { Prepaid insurance } & 8,000 & 10,000 \\\text { Inventory } & 14,000 & 16,000 \\\text { Property, plant, and equipment } & 22,000 & 16,000 \\\text { Accumulated depreciation } & \underline{(6,000) }& \underline{(4,000)}\\ \text { Total } & \underline{ \$ 72,000} & \underline{62,000} \\ \text { Accounts payable } & \$ 20,000 & \$ 16,000 \\ \text { Operating expenses payable } & 14,000 & 16,000 \\ \text { Long term notes payable } & 10,000 & 12,000 \\ \text { Common stock } & 18,000 & 12,000 \\ \text { tained earnings } &\underline{ 10,000}& \underline{6,000} \\& \underline{\$ 72,000} &\underline{ \$ 62,000 }\\\text { Income Statement } & \text { Year } 2 \\\text { Revenue } & \$ 70,000 \\\text { Cost of goods sold } & \underline{40,000} \\ \text { Gross margin } & \underline{30,000 }\\\text { Depreciation expense } & 2,000 \\\text { Other operating expense } & \underline{18,000} \\\text { Net income } & \underline{\$ 10,000}\end{array}\end{array}
Required:
a)Calculate the cash flow from operating activities (using the indirect method).
b)Calculate the cash flow from investing activities.
c)Calculate the cash flow from financing activities.

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