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The current sections of Leach Inc.'s balance sheets at Dec 31, 2010 and 2011, are presented here. Leach's net income for 2011 was $153,260. Depreciation expense was $23,900.
Item 2011 2010Current assetsCash 104880 99110Accounts receivable 110070 89150Inventory 158000 172470Prepaid expenses 26610 21870Total current assets 399560 382600
Current liabilitiesAccrued expense payable 15350 4870Accounts payable 85490 92300Total current liabilites 100840 97170
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended Dec 31 2011, using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow use either a negative sign preceding the number eg.-45 or parentheses eg (45).)
What are some common relationships and other considerations used by auditors when assessing the dollar amount considered material?
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