Statement of cash flows Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company. To Prepare: The statement of cash flows using the direct method of presenting cash flows from operating activities.

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Statement of cash flows-indirect methodThe comparative balance sheet of Navaria Inc. for December 31, 20Y3and 20Y2, is shown as follows: (attached) Additional data obtained from an examination of the accounts in theledger for 2013 are as follows:a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash.c. There were no disposals of equipment during the year.d. The common stock was issued for cashe. There was a $500,000 credit to Retained Earnings for net income.f. There was a $90,000 debit to Retained Earnings for cashdividends declared. InstructionsPrepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities.

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Chapter 16, Problem 16.5APR

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To Prepare: The statement of cash flows using the direct method of presenting cash flows from operating activities.

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Statement of cash flows-indirect methodThe comparative balance sheet of Navaria Inc. for December 31, 20Y3and 20Y2, is shown as follows: (attached) Additional data obtained from an examination of the accounts in theledger for 2013 are as follows:a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash.c. There were no disposals of equipment during the year.d. The common stock was issued for cashe. There was a $500,000 credit to Retained Earnings for net income.f. There was a $90,000 debit to Retained Earnings for cashdividends declared. InstructionsPrepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities.

Statement of cash flows-indirect methodThe comparative balance sheet of Livers Inc. for December 31, 2013 and20Y2, is shown as follows: Additional data obtained from an examination of the accounts in theledger for 2013 are as follows:A. The investments were sold for $175,000 cash. B. Equipment and land were acquired for cash.C. There were no disposals of equipment during the year.D. The common stock was issued for cash.E. There was a $500,000 credit to Retained Earnings for net income.F. There was a $90,000 debit to Retained Earnings for cashdividends declared. InstructionsPrepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities.

Statement of Cash Flows Problem On the basis of the following data for Breach Co. for the year ended December 31, 2016 and the preceding year, prepare the attached statement of cash flows using the indirect method of reporting cash flows from operating activities. Fill in the blanks and boxes in the accompanying Excel Sheet with the missing information. A worksheet is attached below for your use. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. Stock was issued for cash - 3,200 shares at $10 par. Net income for 2016 was $76,000. Cash dividends declared and paid were $13,000. YearYear20162015Cash170,000$ 74,000Accounts receivable (net)78,00085,000Inventories106,50090,000Equipment395,000370,000Accumulated depreciation(195,000)(158,000)554,500$ 461,000$ Accounts payable (merchandise creditors)51,000$ 50,000$ Taxes payable2,5005,000Common stock, $10 par262,000230,000Retained earnings239,000176,000Totals554,500$ 461,000