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Jon Gezotis Company reported the following items in 2014:
Net income
$50,000
Dividends paid
6,000
Increase in accounts receivable
12,000
Increase in accounts payable
8,000
Purchase of equipment (capital expenditure)
9,000
Depreciation expense
3,500
Issue of notes payable
15,000
Required:
Calculate the following:
(1) net cash provided by operating activities,
(2) the net change in cash during 2014, and
(3) free cash flow.
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