ANSWERS TO QUESTIONS
Investing Activities Purchase of equipment (8,000) Financing Activities Issue notes payable 20,000 Dividends (5,000) Net cash flow from financing activities 15,000 Net change in cash ($39,000 – $8,000 + $15,000) $46,000 ... Enclosed is the Statement of Cash Flows, which best illustrates how both of these situations occurred simultaneously. ................
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