The net income reported on an income statement for the current year was $58,000. Depreciation recorded on fixed assets for the year was $24,000. In addition, equipment with an original cost of $130,000 and accumulated depreciation of $115,000 on the date of the sale, was sold for $20,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method.
Definitions:
Contract Voided
Refers to a contract that has been declared invalid and is therefore unenforceable, as if it had never been made.
Loan Agreement
A contract between a borrower and lender outlining the terms of a loan, including repayment schedule, interest rates, and the obligations of both parties.
Interest Rate
The percentage at which interest is paid by a borrower for the use of money, or the percentage earned on a savings or investment account.
Donaghue V. Stevenson
A foundational case in modern law that established the principle of duty of care, marking the inception of modern negligence law.
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