Question 14.CP.2: 1. Retained earnings were $120,000 at the beginning of the y...

Managerial Accounting The Cornerstone of Business Decision-Making

1. Retained earnings were $120,000 at the beginning of the year and $160,000 at the end of the year. Net income for the current year was $$100,000. Calculate the dividends paid and explain why they are presented in the financing section of the statement of cash flows.

2. Explain why “gain on sale of equipment” is subtracted from net income in calculating operating cash flows.

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