Theta Services Scenario Cash Flow Statement Analysis Data Theta Services provided the following data for the year 2023 to prepare its Cash Flow Statement Net Income $500,000 Depreciation Expense $100,000 Increase in Accounts Receivable $50,000 Decrease in Inventory $20,000 Increase in Accounts Payable $30,000 Purchase of Equipment $200,000 Proceeds from Issuance of Long term Debt $100,000 Payment of Dividends $50,000 Requirements Prepare Theta Services' Cash Flow Statement for the year 2023 using the indirect method Analyze the cash flow from operating activities, investing activities, and financing activities Discuss the significance of each cash flow category for Theta Services' financial management Evaluate Theta Services' liquidity and financial health based on the Cash Flow Statement Recommend strategies to improve Theta Services' cash flow management

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Question: Theta Services Scenario: Cash Flow Statement Analysis Data: Theta Services provided the following data for the year 2023 to prepare its Cash Flow Statement: Net

Theta Services

Scenario: Cash Flow Statement Analysis

Data: Theta Services provided the following data for the year 2023 to prepare its Cash Flow Statement:

Net Income: $500,000
Depreciation Expense: $100,000
Increase in Accounts Receivable: $50,000
Decrease in Inventory: $20,000
Increase in Accounts Payable: $30,000
Purchase of Equipment: $200,000
Proceeds from Issuance of Long-term Debt: $100,000
Payment of Dividends: $50,000

Requirements: Prepare Theta Services' Cash Flow Statement for the year 2023 using the indirect method. Analyze the cash flow from operating activities, investing activities, and financing activities. Discuss the significance of each cash flow category for Theta Services' financial management. Evaluate Theta Services' liquidity and financial health based on the Cash Flow Statement. Recommend strategies to improve Theta Services' cash flow management.

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