Use the Indirect Method of Preparing a Statement of Cash

question 160

Short Answer

Use the indirect method of preparing a statement of cash flows to answer the question.
Ending balances for Sunday Hut are listed below:
Net income for this year was $97,000.
What was the net cash inflow from financing activities?

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Definitions:

Negative Externality

Occurs when the production or consumption of a good or service imposes costs on third parties who are not involved in the transaction.

Marginal Cost

The financial impact of producing one more unit of a product or service.

Marginal Social Cost

The additional cost incurred by society as a whole due to the production of one more unit of a good or service.

Damage Cost

The monetary cost associated with the harm done to goods in an economy, which can result from disasters, accidents, or intentional acts.