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The Following Information Should Be Used to According to the Provisions

Question 9

Multiple Choice

The following information should be used to according to the provisions of GAAP (Statement of Cash flows) and using the following data.  Net income $50,000 Provision for bad debts 2,000 Increase in inventory 1,000 Increase in accounts payable 2,000 Purchase of new equipment 15,000 Sale of equipment for $10,000 gain 20,000 Depreciation expense 5,000 Repurchase of common stock 10,000 Payment of dividend 4,000 Interest payment 3,000\begin{array} { l r } \text { Net income } & \$ 50,000 \\\text { Provision for bad debts } & 2,000 \\\text { Increase in inventory } & 1,000 \\\text { Increase in accounts payable } & 2,000 \\\text { Purchase of new equipment } & 15,000 \\\text { Sale of equipment for } \$ 10,000 \text { gain } & 20,000 \\\text { Depreciation expense } & 5,000 \\\text { Repurchase of common stock } & 10,000 \\\text { Payment of dividend } & 4,000 \\\text { Interest payment } & 3,000\end{array}
-What is net cash flow from financing?


A) $6,000
B) $3,000
C) ($14,000)
D) ($17,000)

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