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On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows for the current year using the indirect method.
Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000.
Eccentric Runout
Variation in the rotational path of a rotating part, causing uneven movement or vibration.
Backlash
The play or loose movement in mechanical components, particularly in gears, resulting from gaps between parts.
Gear Teeth
The individual protrusions on the circumference of a gear that engage with those on another gear to transmit torque and motion.
Runout
A defect that causes side-to-side or lateral movement in a spinning object. In wheels it is commonly caused by imperfections in the wheel’s shape; in disc brakes it can be caused by a distorted rotor, hub flange distortion, or worn wheel bearings.
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