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Brighton,Inc

question 46

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Brighton,Inc. ,uses the indirect method to determine its net cash flows from operating activities.During the course of the year,the company's accounts receivable increased by $10,000 and its accounts payable decreased by $5,000.As a result of these two items,the calculation to determine cash flows from operating activities will be:

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Definitions:

Legal Existence

A term indicating that an entity is recognized under the law as having legal rights and obligations.

Hostile Tender Offer

An attempt to acquire a company against the wishes of its management and board by directly offering to buy the shares from the shareholders.

Cash

Cash is a medium of exchange in the form of physical currency, such as coins and banknotes.

Target Shareholders

Individuals or entities that own shares in a company that is the subject of a merger or acquisition proposal.

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