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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962 Exercise 49
Statement of Cash Flows, Indirect Method
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.
Refer to the information for Booth Manufacturing on the previous page.
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?
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.
Refer to the information for Booth Manufacturing on the previous page.
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
The indirect method of cash flow begins ...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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