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On the Basis of the Following Data for Breach Co

question 62

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On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method.
Assume that equipment costing $25,000 was purchased for cash and no long term assets were sold during the period.
Stock was issued for cash-3,200 shares at par. Net income for the current year was $76,000. Cash dividends declared and paid were $13,000. On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long term assets were sold during the period. Stock was issued for cash-3,200 shares at par. Net income for the current year was $76,000. Cash dividends declared and paid were $13,000.

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Definitions:

Transform Fault

A type of fault where two tectonic plates slide horizontally past each other, typically associated with seismic activity.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, where new oceanic crust is created by volcanic activity.

Linear Island Chain

A series of islands arranged along a straight or nearly straight line, often formed by volcanic activity along a submarine ridge.

Fracture Zone

An area in oceanic or continental crust characterized by cracks and faults due to tectonic stresses, often associated with earthquake activity.

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