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Question

Use the following information regarding Pyramid Construction Inc. to answer the next 3 questions: •Net income = $1,120,000 • Depreciation expense for the year = $27,000 • Decrease in inventory = $13,800 • Increase in taxes payable = $1,500 • Issuance of common stock = $60,000 • Dividends paid = $32,300 • Purchase of land = $28,300 • Investment in associate = $58,000 • Purchase of held-for-trading securities = $7,200 • Sale of available-for-sale securities = $84,700

Assume the company uses U.S. GAAP to prepare its financial statements.

The company’s cash flow from operations is closest to:

A. $1,155,100

B. $1,162,300

C. $1,130,000

Video Explanation and Answer

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