Refer to all of the facts in Problem 12-11A. Required 1. Prepare a statement of cash flows
Question:
Refer to all of the facts in Problem 12-11A.
Required
1. Prepare a statement of cash flows for 2012 using the indirect method in the Operating Activities section.
2. Evaluate the following statement: Whether a company uses the direct or indirect method to report cash flows from operations is irrelevant because the amount of cash flow from operating activities is the same regardless of which method is used.
Step by Step Answer:
1 BANNACK CORP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30 2012 Cash Flows from Operating Act...View the full answer
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
Related Video
In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
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