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Business, 03.04.2020 17:00 SJ9320

Gingerich Company's comparative balance sheet and income statement for last year are as follows: Balance Sheet Ending Balance Beginning Balance Cash $45,000 $27,000 Accounts receivable 39,000 30,000 Inventory 30,000 44,000 Prepaid expenses 14,000 19,000 Long-term investments 280,000 200,000 Plant and equipment 600,000 600,000 Accumulated depreciation (322,000) (291,000) Total assets $686,000 $629,000 Accounts payable $19,000 $34,000 Accrued liabilities 37,000 25,000 Taxes payable 32,000 14,000 Deferred taxes payable 28,000 22,000 Bonds payable 100,000 150,000 Common stock 100,000 70,000 Retained earnings 370,000 314,000 Total liabilities and stockholders' equity $686,000 $629,000 Income Statement Sales $800,000 Less: Cost of goods sold 430,000 Gross margin 370,000 Less: Operating expenses 230,000 Net operating income 140,000 Less: Income taxes 42,000 Net income $98,000 The company declared and paid $42,000 in cash dividends during the year. Required: Using the direct method, prepare each of the following activities sections of the company's statement of cash flows for the year. Amounts to be deducted should be indicated by a minus sign.

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