Question: 5. [Preparation of cash flow statement-direct and indirect methods; CFA adapted] The balance sheet and income state- ment for the Green Company are presented in

5. [Preparation of cash flow statement-direct and indirect methods; CFA adapted] The balance sheet and income state- ment for the Green Company are presented in Exhibit 3P-2.

a. Based on the financial statements provided, prepare a state- ment of cash flows for 2001 using the (1) Indirect method (ii) Direct method

b. Calculate the company's free cash flow.

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