Prepare an INDIRECT statement of cash flow!
Do not prepare a direct method statement. SHOW EXCEL FORMULAS!
Net income			$100,000
Cash December 31, 2018			$500,000
Cash December 31 2019			???????
Depreciation Expense			$1,000
Increase in inventory			$2,000
Decrease in accounts payable			$3,000
Increase in Prepaid insurance			$4,000
Purchased stock			$5,000
Purchased land			$6,000
Paid mortgage			$7,000
Paid car loan			$2,200
Increase in wages payable			$3,300

Answer rating: 100% (QA)

To prepare an INDIRECT statement of cash flow we will start with the net income and make adjustments to reconcile it to the change in cash from the be... View the full answer