Lake Isabella, Inc. reports the following income statement for the year ended December 31, 2017:
The company also reports the following information from the balance sheet:
Required:
a. Prepare, in good form, the operating section of the statement of cash flow, using the direct method for Lake Isabella, Inc. for December 31, 2017.
b. Prepare, in good form, the operating section of the statement of cash flow, using the indirect method for Lake Isabella, Inc. for December 31, 2017.

Question

Lake Isabella, Inc. reports the following income statement for the year ended December 31, 2017:
  The company also reports the following information from the balance sheet:
  Required: 
a. Prepare, in good form, the operating section of the statement of cash flow, using the direct method for Lake Isabella, Inc. for December 31, 2017.
b. Prepare, in good form, the operating section of the statement of cash flow, using the indirect method for Lake Isabella, Inc. for December 31, 2017.

Quizplus · Accepted Answer

The Answer of Lake Isabella, Inc. reports the following income statement for the year ended December 31, 2017:
  The company also reports the following information from the balance sheet:
  Required: 
a. Prepare, in good form, the operating section of the statement of cash flow, using the direct method for Lake Isabella, Inc. for December 31, 2017.
b. Prepare, in good form, the operating section of the statement of cash flow, using the indirect method for Lake Isabella, Inc. for December 31, 2017.