Exam 3: Financial Statements, Cash Flows and Tax

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Which of the following presents a summary of the changes in a firm's balance sheet from the beginning of an accounting period to the end of that accounting period?

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Super Grocers, Inc., provided the following financial information for the quarter ending September 30, 2006: Depreciation and amortization - $133,414 Net income - $341,463 Increase in receivables - $ 112,709 Increase in inventory - $81,336 Increase in accounts payables - $62,411 Decrease in marketable securities - $31,225 What is the cash flow from operating activities generated during this quarter by the firm?

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The balance sheet identity can be stated as Total assets - Total liabilities = Total stockholders' equity.

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On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The goods were shipped to Rynex on July 2. The firm's accountants should recognize the sale on

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