special attention to the wisdom of the? cash dividend payment.
Cash flows from operating activities
Net income............$73,750
Adjustments to reconcile net income to net
Cash provided by operating activities
Increase in accounts receivable......$15,375
Increase in merchandise inventory..21,250
Decrease in prepaid expenses...........875
Decrease in accounts payable..........28,500
Depreciation expense......................18,750
Loss on sale of plant assets...............5,125
Net cash provided by operating activities...$33,375
Cash flows from operating activities
Net income............$73,750
Adjustments to reconcile net income to net
Cash provided by operating activities
Increase in accounts receivable......$15,375
Increase in merchandise inventory..21,250
Decrease in prepaid expenses...........875
Decrease in accounts payable..........28,500
Depreciation expense......................18,750
Loss on sale of plant assets...............5,125
Net cash provided by operating activities...$33,375