New York Production Company Uses the Indirect Method to Prepare

question 139

True/False

New York Production Company uses the indirect method to prepare its statement of cash flows. The Treasury Stock account had a debit balance of $11,000 at the beginning of the year and a debit balance of $16,000 at the end of the year. No treasury stock was sold during the year. The financing section of the statement of cash flows will show a positive cash flow of $5,000 for the buyback of treasury stock.

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