Share
Explore BrainMass

Statement of Cash Flows (Indirect Method) for Millco

1) Prepare statement of cash flows (indirect method) using balance sheet data. Presented below {see attached} are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2004.

2) Write 350-500 words discussing how the different sections of the statement of cash flows assist different sets of users.

3) Also discuss the merits of using the direct method versus the indirect method of preparation

Attachments

Solution Preview

Plese see attached file (under "sol" in excel document) for the complete answers

2) Write 350-500 word paper discussing how the different sections of the Statement of Cash Flows assist different sets of users.
"(Source:http://www.investopedia.com/university/fundamentalanalysis/cashflow.asp)
(Management Accounting by Charles T Horngren)"

The primary Purpose of the Statement of Cash Flows isĀ  to provide information about: cash receipts, cash payments, and the net change in cash resulting from:operating,investing, and financing activities of a company during a period.
The statement of cash flow is extremely important to management, lenders, and tax authorities as well as investors. Unlike the income statement , the cash-flow statement does not take into account ...

Solution Summary

The solution prepares Statement of Cash Flows (Indirect Method) for Millco, Inc, discusses how the different sections of the statement of cash flows assist different sets of users and discusses the merits of using the direct method versus the indirect method of preparation.

$2.19