Chapter 4, Problem 4.6.2P

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

• 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)

To Indicate:

The reason of adding the depreciation in operating cash flow while preparing the Cash Flow Statement using indirect method