Discuss operating activities in the statement of cash flows

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1. Ramson Company worksheet for the preparation of its 2016 statement of cash flows included the following:

 

2016

 

December 31

January 1

Accumulated depreciation1

$124,000 

$96,000

Accounts receivable

41,650

44,600

Allowance for uncollectible accounts

1,110

878

Prepaid rent expense

12,225

15,575

Accounts payable

37,187

29,950

Note #1: Assume that the only transactions affecting the increase in accumulated depreciation for 2016 was the recording of the annual depreciation expense.

Ramson's 2016 net income is $325,500. What amount should Ramson include as net cash provided by operating activities in the statement of cash flows for 2016?

2. Mary wants to make a deposit on 2/1/2015 to be able to withdraw $2,500 at the beginning of each year starting 2/1/2020 for five years. The interest rate is 8 percent. 

Required: What is the amount of the deposit that Mary needs to make on 2/1/2015?

Reference no: EM131773857

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