The following information was taken from the 2017 financial statements of Zurich Corporation, a maker of fine

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The following information was taken from the 2017 financial statements of Zurich Corporation, a maker of fine Swiss watches:

Net income.............................................$(200,000)

Depreciation................................................50,000

Increase (decrease) in Accounts receivable.........(140,000)

Inventories..................................................25,000

Other current assets.......................................10,000

Accounts payable........................................120,000

Accrued payables.......................................(25,000)

Interest payable..........................................50,000

Required:

1. Calculate Zurich's cash flow from operating activities for 2017.

2. Explain the reasons for the difference between the firm's net income and its cash flow from operating activities in 2017.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial Reporting and Analysis

ISBN: 978-1259722653

7th edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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