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Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767 Exercise 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
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
Explanation
Verified
Verified
1. Calculation of operating cash flows u...
Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
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