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Use the Following Information to Perform the Calculations Below (Using

question 76

Essay

Use the following information to perform the calculations below (using the indirect method). Clearly label the amount of each answer as positive or negative and show all your calculations.
 Net income $401,000 Beginning accounts payable $119,000 Depreciation expense 97,000 Ending accounts payable 146,000 Beginning accounts receivable 420,000 Purchase of long-term assets 612,000 Ending accounts receivable 439,000 Issuance of long-term debt 220,000 Beginning inventory 516,000 Issuance of stock for cash 180,000 Ending inventory 550,000 Issuance of stock for long-term assets 110,000 Beginning prepaid insurance 42,000 Purchase of treasury stock 64,000 Ending prepaid insurance 48,000 Sale of long-term investment at cost 56,000\begin{array} { l r l r } \text { Net income } & \$ 401,000 & \text { Beginning accounts payable } & \$ 119,000 \\\text { Depreciation expense } & 97,000 & \text { Ending accounts payable } & 146,000 \\\text { Beginning accounts receivable } & 420,000 & \text { Purchase of long-term assets } & 612,000 \\\text { Ending accounts receivable } & 439,000 & \text { Issuance of long-term debt } & 220,000 \\\text { Beginning inventory } & 516,000 & \text { Issuance of stock for cash } & 180,000 \\\text { Ending inventory } & 550,000 & \text { Issuance of stock for long-term assets } & 110,000 \\\text { Beginning prepaid insurance } & 42,000 & \text { Purchase of treasury stock } & 64,000 \\\text { Ending prepaid insurance } & 48,000 & \text { Sale of long-term investment at cost } & 56,000\end{array}

a. Calculate the amount of cash flows from operating activities. _____________
b. Calculate the amount of cash flows from investing activities. _____________
c. Calculate the amount of cash flows from financing activities. _____________
d. Calculate the net change in cash. _____________

Apply break-even analysis to single and multi-product settings.
Understand the relationship between fixed costs, variable costs, and sales volume in cost-volume-profit analysis.
Understand the concept of net operating income and its calculation for different unit sales volumes.
Learn how the sales mix impacts the overall break-even point for a company.

Definitions:

Fatty Substances

Lipids that are found in blood and body tissues, involved in various bodily functions.

Artery

A blood vessel that carries oxygenated blood away from the heart to the body.

Tachycardia

A condition where the heart rate exceeds the normal resting rate, often defined as a heart rate over 100 beats per minute in adults.

Beats Per Minute

A measurement indicating the number of beats in one minute, commonly used to determine heart rate.

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