(Preparing a cash flow statement using the indirect method to determine cash from operations, LO 4) Refer to the information provided in Problem P6-5 and respond to the following:

a. Use the information provided to prepare a cash flow statement for Agu for the year ended March 31, 2005. Use the indirect method for calculating cash from Operations.

b. Assume the role of a lender who is evaluating Agu’s situation. Analyze and interpret the cash flow statement you prepared and prepare a report to your manager describing what you learned about Agu from the statement.