Preparing a Statement of Cash Flows
SDPS Inc. provides airport transportation services in southern California. An income statement for 2019 and balance sheets for 2019 and 2018 appear below.
Required:
l. Prepare a statement of cash flows using the indirect method to compute net cash flow from operating activities.
2. CONCEPTUAL CONNECTION Explain what has been responsible for the decrease in cash.
3. CONCEPTUAL CONNECTION Determine how SDPS financed its increase in net property, plant, and equipment during a period in which it had a substantial net loss.
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