Data for Ellis Corp. are presented in E22-12.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirect method.

Data From E22-12:

Ellis Corp.’s income statement for the year ended December 31, 2014, had the following condensed information: Ellis Corp.’s income statement for the year ended December 31, 2014, had the following condensed information:

                        

There were no purchases or sales of trading (FV-NI) investments during 2014.
Ellis’s statement of financial position included the following comparative data at December 31:

                        

Instructions
(a) Prepare the operating activities section of the statement of cash flows using the direct method.
(b) Assume that Ellis Corp.’s current cash debt coverage ratio in 2013 was 2. Calculate the company’s current cash debt coverage ratio in 2014, and discuss the results from the perspective of a creditor.