Suppose your company reports $ 160 of net income and $ 40 of cash dividends paid, and

Question:

Suppose your company reports $ 160 of net income and $ 40 of cash dividends paid, and its comparative indicates the following.

Required:
1. Prepare the operating activities section of the statement of cash flows, using the indirect method.
2. Identify the most important cause of the difference between the company€™s net income and net cash flow from operating activities.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...