What is the impact of the transactions on the statement

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Question - On January 1, 2018, Sina Co. sold inventory to a customer on the following terms: $150,000 payable for 3 years on December 31 of each year (i.e. the first payment is due on December 31, 2018). Sina's incremental borrowing rate is 4% and the customer's incremental borrowing rate is 6%.

Required - What is the impact of the above transactions on the Statement of Cash Flow for the year ended December 31, 2018? For cash flow from operations, describe the impact for both the indirect and direct methods.

Reference no: EM133165209

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