Comparative selected account balances and an unclassified income statement for
Comparative selected account balances and an unclassified income statement for KTA Company follow:
In addition, the following information is available:
• Accounts Payable balances resulted from merchandise inventory purchases.
• The book value of the equipment was $24,000.
• Declared and paid $25,000 dividends.
• Purchased a truck costing $100,000 by issuing a long-term note payable of $20,000 as a partial payment.
Requirements
1. Prepare a cash flow statement for KTA using the indirect method.
2. Prepare the cash flow from operating activities section by using the direct method.
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