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Monty Corporation reported the following condensed income statement for 2014:Sales $ 500,000 Cost of Goods Sold(280,000)Gross Profit 220,000 Operating Expenses:Depreciation expense $ 15,000 Salaries Expense 13,000 Rent Expense 10,000 Insurance Expense 5,000 (43,000)Income before taxes $ 177,000 Income tax expense (62,000)Net Income $ 115,000 During 2014, the following changes occurred in the company's current assets and current liabilities:Increase (Decrease)Cash $ 19,850 Account Receivable(6,750)Inventories 5,600 Accounts Payable(2,800) Salaries Payable 1,750 Required:Compute the net cash flows from the operating activities using the:a. Direct methodb. Indirect method
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Monty Corporation reported the following condensed income statement for 2014:Sales $ 500,000 Cost of...
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