
Statement of
Indirect method: Indirect method is the most widely used method to compute cash (used) provided by operating activities. Under this method net cash flow is determined by adding back noncash expense and losses to net income and deducting all noncash income and gains from net income.
To prepare: To prepare a statement of cash flows (Indirect method).
Given Information:
Assets |
Amount ($) |
Liabilities |
Amount ($) |
Cash |
8,500 |
Current liabilities |
15,000 |
Current assets other than cash |
29,000 |
Long-term notes payable |
25,500 |
Investments |
20,000 |
Bonds payable |
25,000 |
Plant assets (net) |
67,500 |
Common stock |
75,000 |
Land |
40,000 |
24,500 |
|
|
165,000 |
|
165,000 |
(B)
(B)
To prepare: To prepare a condensed Balance sheet.

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Chapter 23 Solutions
Study Guide Intermediate Accounting, Volume 1: Chapters 1 - 14
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