ANSWERS TO QUESTIONS
29. (a) Net income is adjusted downward by deducting $7,000 from $90,000 and reporting cash provided by operating activities as $83,000. (b) The issuance of the preferred stock is a financing activity. The issuance is reported as follows: Cash flows from financing activities. Issuance of preferred stock $1,150,000 Questions Chapter 5 (Continued) ................
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