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On the basis of the following data for Breach 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 $25,000 was purchased for cash and no long term assets were sold during the period.
Stock was issued for cash-3,200 shares at par.
Net income for the current year was $76,000.
Cash dividends declared and paid were $13,000.
Sales
The total amount of goods or services sold by a company, contributing to its revenue.
Sunk Cost
A cost that has already been incurred and cannot be recovered, which should not affect future business decisions.
Incremental Overhead
The additional overhead costs incurred as a result of a specific business activity or decision.
Salary Expense
The total amount paid to employees for services rendered during a specific period, usually shown in the income statement.
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