Comparative selected account balances and an unclassified income statement for
Comparative selected account balances and an unclassified income statement for THK Company follow:
In addition, the following information is available:
• Accounts Payable balances resulted from merchandise inventory purchases.
• The book value of the equipment was $13,000.
• Signed a 6%, 10-year note payable in exchange for a building with a market value of $80,000.
• Issued 2,000 new common shares at $10 per share.
Requirements
1. Prepare a cash flow statement for THK, using the indirect method.
2. Prepare the cash flow from operating activities section by using the direct method.
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