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Valley Services Company Loaned $12,000 on August 1, 2013 to an Individual

Question 111

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Valley Services Company loaned $12,000 on August 1, 2013 to an individual who issued Valley a promissory note with 6% interest. The issuer of the note repaid the principal and interest on July 30, 2014. How did the August 2013 event affect Valley's statement of cash flows? How did the July 2014 event affect it?

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Valley would show a $12,000 outflow for ...

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