Wallace Company's statement of cash flows for the current year is summarized as follows. Cash provided by
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Cash provided by operating activities ................. $275,000
Cash used in investing activities ............................... (140,000)
Cash provided by financing activities .................. 45,000
Increase in cash during the year .......................... $180,000
Cash balance, beginning of the year....................... 75,000
Cash balance, end of the year ............................... $255,000
a. Briefly explain what is included in each of the first three categories listed (i.e., the cash from operating, investing, and financing activities categories).
b. On the basis of the limited information presented, describe the company's change in cash position during the year and your interpretation of the strength of the company's current (end of-year) cash position.
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Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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