Chapter 14, Problem 14.39BP

1.

To determine

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:

2.

To determine

To Prepare: Single step income statement of FRC for the year ended December 31, 2016 (using single-step format).

3.

To determine

To Prepare: The balance Sheet of FRC at December 31, 2016.

4.

To determine

To Prepare: Statement of cash flows under indirect method.