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    Statement of Cash Flows

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    The cash flow statement is an important, and often overlooked, financial statement. However, it can provide important data for use by internal organization management. By analyzing the balance sheet and income statement, the accountant can then prepare the statement and share the results with both internal and external users.

    Use the Unit 3, Part 2 Template to determine the appropriate activity (operating, investing, or financing) for each transaction listed for Skylar Enterprises, Inc., and prepare the cash flow statement using the indirect method in good form for reporting. Data is provided in the Information worksheet in the template; complete the statement of cash flow in the Cash Flow Statement worksheet. Use the suggested materials in the Unit Resources if you need more information on preparing cash flow statements.

    I do know that the change in cash is 51,000. And that the beginning period is suppose to be 12/21/12 with an ending period of 1/1/12.

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    Solution Preview

    The solution is attached. It is very important to use the 12/31/12 column as beginning balance and 1/1/12 column as ending beginning. I ...

    Solution Summary

    This posting shows how to use indirect method to prepare a statement of cash flows based on the information given on balance sheet and income statement.