Condensed financial data of Tobita Limited, which follows ASPE, for 2011 and 2010 follow:
Additional information: During the year, $70 of common shares were issued in exchange for plant assets. No plant assets were sold in 2011.
(a) Prepare a statement of cash flows using the indirect method.
(b) Prepare a statement of cash flows using the direct method.
(c) Does Tobita Limited have any options on how to classify interest and dividends paid on the statement of cash flows?
(d) What would you consider to be an alarming trend that is revealed by the statements that you have prepared? Is it as easy to notice this trend using the direct method, as in part (b)?

  • CreatedAugust 23, 2015
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