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Holly Co: Using the direct method, convert the income statem

Exercise 13-9 Net cash provided by operating activities direct method) (L04)
Refer to the data for Holly Company in exercise 13-8.

Required
Using the direct method, convert the company's income statement to a cash basis

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Exercise 13-9 Net cash provided by operating activities direct method
Refer to the data for Holly Company in exercise 13-8

Required:
Using the direct method, convert the company's income statement to a cash basis.

Excerise 13-8 Prepare a statement of Cash Flows (Indirect Method)
Comparative financial statement data for Holly Company

31-Dec Increase Activity
2007 2006 (Decrease)
Cash 4 7 -3
Accounts Recievable 36 29 7 Operating
Inventory 75 61 14 Operating
Plant and Equipment 210 180 30 Investing
Accumulated Depreication -40 -30 10 Operating
Total Assets 285 247
Accounts Payable 45 39 6 Operating
Common Stock 90 70 20 Financing
Retained Earnings 150 138 12
Total liabilities and stockholder's ...

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This solution is comprised of a detailed explanation to answer use the direct method, convert the income statement to a cash basis.

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