Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

تمرين 20

Booth Manufacturing has provided the following financial statements.
Other information includes: (a) Equipment with a book value of $125,000 was sold for $175,000 (original cost was $225,000); and (b) Dividends of $225,000 were declared and paid.
Statement of Cash Flows, Indirect Method
Refer to the information for Booth Manufacturing above.
Required:
1. Calculate the cash flows from operations using the indirect method.
2. Prepare a statement of cash flows.
3. Conceptual Connection: Search the Internet to find a statement of cash flows. Which method was used-the indirect method or the direct method How does the net income reported compare with the operating cash flows To the change in cash flows