
Concept Introduction:
Cash Flow statement:
The Cash flow statement shows the movement of cash during a particular period. The
- Cash flows from operating activities
- Cash Flows from investing activities
- Cash flows from financing activities
(Note: Cash flows from operating activities can be prepared using direct or indirect method)
Free cash flow is used to determine the financial performance of a company. Frees cash flows is surplus money that is saved after spending on Capital assets and expenses. It is calculated with the help of following formula:
Requirement-1:
To prepare: The Cash flow statement of Morris Education Supply for the year ended Dec. 31, 2016 using the indirect method
Requirement-2:
To evaluate: The Cash flows of Morris Education Supply for the year ended Dec. 31, 2016
Requirement-3:
To evaluate: The Expected Free Cash flows of Morris Education Supply for the year ended Dec. 31, 2017

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Chapter 16 Solutions
Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
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