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Calculate the business cash return on owner equity

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Reference no: EM132999310

XYZ Company has asked for your assistance in preparing its cash flow statement for 20X3. Among other items, listed below are the transactions:

1. Investment by owner: $6000
2. Payments to employees: $16 200
3. Receipt from sale of investments: $2600
4. Ending cash balance: $14 600
5. Payments for inventory: $12 000
6. Cash collected from customers: $34 800
7. Withdrawals by owner: $3600
8. Payment for purchase of warehouse: $18 400
9. Payment of interest: $1000.

Required:

Problem A. Prepare the business' 20X3 cash flow statement.

Problem B. If the average owner's equity was $31 000, calculate the business's cash return on owner's equity.

Problem C. What is your evaluation if last year the business's cash return was 17.2 per cent?

Reference no: EM132999310

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