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Hardy Ltd has just completed its first year of operations on 30 June 2018. The following are excerpts from their financial statements:
Sales revenue $137,000
Expenses $81,000
Accounts receivable (year end) $42,000
Accounts payable* (year end) $37,000
Assume that accounts payable related to utility expenses.
Required:
Problem a. Calculate net cash from (used by) operating activities using the direct method.
Problem b. Briefly explain the usefulness of the Statement of Cash Flows
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