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The $2018$ comparative balance sheet and income statement of A$.$ Karev Pet Supply, Inc, are:

$($Click the icon to view the comparative balance sheet.$)$

$($Click the icon to view the income statement.$)$

A$.$ Karev Pet Supply, Inc., had no noncash investing and financing transactions during $2018.$ During the year, A$.$ Karev Pet Supply, Inc., sold no land or equipment, issued no notes payable, retired no stock, and had no treasury slock transactions.

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A$.$ Karev Pet Supply, Inc.

Statement of Cash Flows

Year Ended December $31,2018$

$\backslash$table$[[$Cash flows from operating activities:$],[$Net income$],[$Adjustments to reconcile net income to net cash$],[$provided by operating activities:$],[$Depreciation expense$],[$Decrease in accounts receivable$],[$Cash flows from investing activities:$],[$Increase in accrued liabilities$],[$Acquisition of land$],[$Acquisition of equipment$],[$Necrease in accounts payable$],[$Net cash provided by $($used for$)$ investing activities$],[$Cash flows from financing activities:$],[$Net increase $($decrease$)$ in cash:$],[$Proceds from issuance of common stock$],[$Cash balance, December $31,2017],[$Cash balance, December $31,2018],[$Payment of dividends$]]$

Requirement $2.$ How will what you learned in this problem help you evaluate an investment in A Karev Pet Supply, Inc?

A$.$ Help predict A$.$ Karev's ability to pay debt and dividends

B$.$ Understand how A$.$ Karev's operating activities, investing activities, and financing activities generate cash receipts and cash payments

C$.$ Help predict A$.$ Karev's future cash flow

D$.$ All of the above

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