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Statement of Cash Flows

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Statement of Cash Flows
(1) Prepare the operating activities section of the statement of cash flows based
on the following informationfor A Company:
Net Income
Depreciation Expense
Loss on Sale Of Equipment
Decrease in Accounts Receivable Compared to Prior Year
Increase in Accounts Payable Compared to Prior Year
Decrease in Prepaid Expenses Compared to Prior Year
Use the Indirect Method.
(2) For each reconciliation item, explain why it has the specific effect (positive or
negative) on cash basis.


Solution Summary

The solution explains how to prepare the Operating Activities section of the Statement of Cash Flows