Required:

Prepare a cash flow statement $($indirect method$-$ CFO, CFI, CFF$)$ to use in explaining this to Lori Crump. Problem $11-5.$

The owner of a small business has asked you to prepare a statement that will show him where his firm's cash came from and how it was used this year. He gives you the following information based on the Cash account in his general ledger:

In addition, the following is available from company records:

Sales were $$61,410$ for the year.

The Accounts Receivable balance decreased by $$690.$

Cash operating expenses totaled $$54,165($including cost of sales, supplies, rent, utilities, part$-$time help, and other miscellaneous expenses$).$

Accounts Payable decreased by a net of $$2,760$ during the year.

The Inventory balance remained constant throughout the year.

Depreciation of $$1,725$ was taken this year.

Required:

Prepare a cash flow statement using the INDIRECT method. $($CFO$,$ CFI, CFF$)$

Cases