Provide a statement between 200 and 300 words in length for senior management. The topic is the
Question:
The Carpet Company's 20 Ã 2 and 20 Ã 3 balance sheets included the following items:
The Carpet Company's income statement was as follows:
¢ Additional information includes the following
¢ Equipment costing $3,500 was purchased during the year.
¢ Fully depreciated equipment that cost $500 was discarded and its cost and accumulated depreciation were removed from the accounts.
¢ Two hundred shares of stock were sold and issued at $15 per share.
¢ The company declared $4,000 of cash dividends and paid $2,500.
Required:
a. Prepare the statement of cash flow under the direct method for the year ended December 31, 20 Ã 3.
b. Prepare the statement of cash flow under the indirect method for the year ended December 31 20 Ã 3.
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