Question

Using the following information, compute cash flow from operating activities under (1) the U.S. approach and (2) the U.K. approach.
(a) Cash paid to purchase inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,800
(b) Cash received from sale of a building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,600
(c) Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450
(d) Cash paid to repay a loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 1,000
(e) Cash collected from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
(f) Cash received from issuance of new shares of common stock . .. . . . . . . . . . . . . . . . . . 1,200
(g) Cash paid for dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 780
(h) Cash paid for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,320
(i) Cash paid to purchase machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,950



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  • CreatedJanuary 29, 2012
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