Chapter 21, Problem 21.20E

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are received commission, payment of salary, and others.

To Prepare: The reconciliation of net income to net cash flows.