Required:

Use the EXCEL worksheet template provided. There are three tabs-

1. Direct Method Statement of Cash Flows (SCF)
2. Spreadsheet for preparing the SCFs. This is where you show your work
3. Cash flows from Operating Activities CFOs Indirect Method

A. In the tab labeled Direct Method SCFs, prepare a complete statement of cash flows for Ace Corporation using the direct method of reporting cash flows from operating activities for the year ended December 31, Year 2. Show your work in the second tab labeled Spreadsheet for SCFs. You can use either the spreadsheet method, t-account method, or a combination of both. Included are some t-accounts to help you. For both the direct and indirect method you will need to analyze the impact the Allowance for doubtful accounts has on accounts receivable and cash. (25 points)

B. In the third tab, prepare the operating activities section only for the statement of cash flows for Ace Corporation using the indirect method for the year ended December 31, Year 2. (25 points)

Please follow the Basic Formatting Guidelines for Excel Documents located in the Writing and Excel Assignments folder.