Commerce Company provides the following comparative data:
Cash $ 93 $ 127
Accounts Receivable 22 24
Merchandise Inventory 50 40
Equipment 240 250
Accumulated Depreciation, Equipment 50 65
Accounts Payable 40 36
Common Stock 145 150
Retained Earnings 170 190
The solution prepares cash flow statement for Commerce Company.
Statement of Cash Flows: Time for change! SFAS No. 95
See attached file.
As contained in the Week Four electronic reserve readings article readings, this article, Broome, O. W. (2004, March/April). Statement of cash flows: Time for change! Financial Analysts Journal, 60(2), 16. , describes the current SFAS No. 95 requirements for the statement of cash flows, cites recent cases of abuse and disinformation involving the statement, and makes significant recommendations for improving the statement. Based on the comments in the article do you think the three sections of the statement of cash flows provide enough information for the reader? Of the three which provides the most information or is this an 'it depends' answer?View Full Posting Details