Chapter 12, Problem 27QS

To determine

Introduction: A company prepares a statement of cash flow for calculating the amount of net decrease or increase in the cash balance during the year. The outflow and inflow of cash from the financing, operating, and investing activities are used to calculate the amount of decrease or increase in the cash balance during the year.

To prepare: Theoperating activities section of the statement of cash flows of company C using the direct method.