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Question - Toro Company reported net income of $100 and depreciation expense of $2. Additionally, it had the following changes in its balance sheet accounts:
Accounts receivable 20 Decrease
Accounts payable 40 Decrease
Inventory 30 Increase
Common stock 100 Increase
Long-term debt 10 Decrease
What is Toro Company's cash flows from operations for the period?
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This company manufactures and sells computer monitors with a three-year warranty. Warranty costs are expected to average 7% of sales during the warranty period.
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