Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2014.
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Which of the following statements is TRUE?
A) The statement of cash flows will show an ending cash balance of $3,000.
B) The statement of cash flows will show total net cash flows of $70,000 positive.
C) The statement of cash flows will show total net cash flows of $3,000 negative.
D) The statement of cash flows will show total net cash flows of $3,000 positive.
Correct Answer:
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