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FOLLOWING IS AN INCORRECTLY PREPARED STATEMENT...

FOLLOWING IS AN INCORRECTLY PREPARED STATEMENT...

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Following is an incorrectly prepared statement of cash flows for Herman Corporation.Review and correct this presentation, using a direct approach.HERMAN CORPORATIONStatement of Cash FlowsFor the Year Ending December 31, 20X2Cash balance at January 1, 20X2$175,000Cash receipts during 20X2Sale of building$Dividend received on investments800,00010,000Cash received from customers2,350,000Proceeds from issuing stock1,400,0004,560,000Cash payments during 20X2Purchase of inventoryInterest on loansIncome taxesRepayment of long-term note payable$760,00056,000124,0002,000,000Purchase of equipment435,000Selling and administrative expenses696,000Dividends on common175,000Cash balance at December 31, 20X2(4,246,000)$489,000$450,000----------------------------------------------------------------------------------Noncash investing/financing activities:Bought land by issuing promissory note payable HERMAN CORPORATIONStatement of Cash FlowsFor the Year Ending December 31, 20X2


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