vi. problem 12-4 statement of cash flows - indirect method, p. 655

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refer to all of the facts in problem 12-3.

1. prepare a statement of cash flows for 2012 using the indirect method in the operating activities section.

2. on the basis of your statement in part (1), draft a brief memo to the president to explain why cash decreased during such a profitable year. include in your explanation any recommendations for improving the company’s cash flow in future years.
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