Homework Answers
Solution 1:
Net cash provided (Used) by operating activities = Net income +Depreciation - Gain on sale of land - Increase in merchandise inventory + Increase in accounts payable
= $85,300 +$12,000 - $7,500 - $2,050 + $6,150 = $93,900
Solution 2:
Future value = $5,000 * (1+0.065)^6 = $7,295.71
Hence 3rd option is correct.
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