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Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014:
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Please prepare the operating activities section of the statement of cash flows, using the direct method. Please use the following format:
Preferred Stock
A security that pays a constant dividend forever. A hybrid between debt and common equity.
Hybrid Security
A financial instrument that combines characteristics of both equity and debt, often providing fixed income or dividends as well as the potential for capital appreciation.
Equity
An ownership interest. The portion of a firm’s capital representing funds belonging to its shareholders. An equity investment is an investment in stock.
Capital Components
The various sources of funding that a company uses to finance its operations and growth, including debt and equity.
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