Other information includes equipment with a book value of


Question: Booth Manufacturing has provided the following financial statements.

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Other information includes:

(a) Equipment with a book value of $125,000 was sold for $175,000 (original cost was $225,000); and

(b) Dividends of $225,000 were declared and paid.

Statement of Cash Flows: Direct Method Refer to the information for Booth Manufacturing above.

Required: Calculate operating cash flows using the direct method.

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Accounting Basics: Other information includes equipment with a book value of
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