Question: Operating Cash Flows, Direct and Indirect Methods (LO 3, 4] Sellmer's Pasta, Inc., has the following financial statements: At the end of 2014, Sellmer purchased

Operating Cash Flows, Direct and Indirect Methods (LO 3, 4] Sellmer's

Operating Cash Flows, Direct and Indirect Methods (LO 3, 4] Sellmer's Pasta, Inc., has the following financial statements: At the end of 2014, Sellmer purchased additional equipment for $24,625. Sellmer paid dividend of $5,000 during the year. Required Prepare a statement of cash flows for 2014 using the direct method. Assume that advertising is paid in cash. Prepare the operating activities section of the statement of cash flows for 2014 using the indirect method. Note that there is no difference between the two methods for the investing and financing sections

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