Ritter Corporation’s accountants prepared the following financial statements for year-end 20X2.
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RITTER CORPORATION |
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Income Statement 20X2 |
|
|
Revenue |
$400 |
|
Expenses |
250 |
|
Depreciation |
50 |
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Net income |
$100 |
|
Dividends |
$ 50 |
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RITTER CORPORATION |
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Balance Sheets December 31 |
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Asset |
20X2 |
20X1 |
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Current assets |
$150 |
$100 |
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Net fixed assets |
200 |
100 |
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Total assets |
$350 |
$200 |
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Liabilities and Equity |
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Current liabilities |
$ 75 |
$ 50 |
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Long-term debt |
75 |
0 |
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Stockholder’s equity |
200 |
150 |
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Total liabilities and equity |
$350 |
$200 |
a. Determine the change in net working capital in 20X2.
b. Determine the cash flow during the year 20X2.