Smith Company provided the following information on selected transactions for 2019:Net income$20,000,000Proceeds from short-term borrowings1,200,000Proceeds from long-term borrowings4,000,000Purchases of fixed assets3,200,000Decrease in inventories8,000,000Proceeds from sale of Smith's common stock2,000,000Depreciation expense500,000What is the net increase in cash for the year ended December 31, 2019, as a result of the preceding information?

Depreciation: It is a non cash expense that shows gradual fall in the value of the asset due to its…

Answered: mith Company provided the following…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

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Smith Company provided the following information on selected transactions for 2019:

Net income	$20,000,000
Proceeds from short-term borrowings	1,200,000
Proceeds from long-term borrowings	4,000,000
Purchases of fixed assets	3,200,000
Decrease in inventories	8,000,000
Proceeds from sale of Smith's common stock	2,000,000
Depreciation expense	500,000

What is the net increase in cash for the year ended December 31, 2019, as a result of the preceding information?

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