On January 1, Year 1, Palmer, a fast-food company, had a balance in its Cash account of

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On January 1, Year 1, Palmer, a fast-food company, had a balance in its Cash account of $32,000. During the Year 1 accounting period, the company had (1) net cash inflow from operating activities of $15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of $4,500.


Required
a. Prepare a statement of cash flows.
b. Provide a reasonable explanation as to what may have caused the net cash inflow from operating activities.
c. Provide a reasonable explanation as to what may have caused the net cash outflow from investing activities.
d. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities.

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Related Book For  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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