Chapter 14, Problem 14.31E

To determine

Statement of cash flow – Spreadsheet method

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Spreadsheet method:

• The statement of cash flows also can be prepared as a spreadsheet.
• The spreadsheet for the statement of cash flow starts with the beginning balance and ends with the ending balances of accounts of the balances sheet.
• The spread includes two extra columns between the ending and beginning balance columns. One column is for debit and other for credit balance.

To Prepare: Statement of cash flows using the spreadsheet in indirect method.