CP$12-2$ Computing Cash Flows from Operating Activities $($Indirect Method$)$

Hamburger Heaven's income statement for the current year and selected balance sheet data for the

current and prior years ended December $31$ are presented below.

TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent $($and subtracted

from net income as Rent Expense$)$ was more than the amount paid for rent in cash during the

current year.

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the

indirect method.CP$12-2$Computing Cash Flows from Operating Activities $($Indirect Method$)$

Hamburger Heaven$$s income statement for the current year and selected balance sheet data for the

current and prior years ended December $31$ are presented below.