Chapter 11, Problem 11.64AP

(Learning Objectives 2, 3, 4: Prepare the statement of cash flows-direct and indirect methods) To prepare the statement of cash flows, accountants for Ronklin Electric Company have summarized 2018 activity in two accounts:

Ronklin Electric’s 2018 income statement and balance sheet data follow:

Requirements

1. 1. Prepare the statement of cash flows of Ronklin Electric for the year ended December 31, 2018, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities.
2. 2. Use Ronklin Electric’s 2018 income statement and information from its selected balance sheet data to prepare a supplementary schedule of cash flows from operating activities using the indirect method.