Chapter 14, Problem 14.32AP

To determine

Requirement 1

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.

The purpose of the statement of cash flows:

Requirement 2

To determine

To Prepare: Income statement of ARC for the year ended December 31, 2018.

Requirement 3

To determine

To Prepare: The balance Sheet of ARC at December 31, 2018.

Requirement 4

To determine

To Prepare: Statement of cash flows under indirect method.