(a)
Cash Flow Statement:
Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the
The cash flow statement also provides information regarding the net cash change that occurred during a period, classifying the activities into three categories those are cash from operating activities, investing, and financing activities.
In operating activities, cash affected transactions only recorded. In investing activities, investing transactions are recorded and in financial activities involve cash flows result from changes in long-term liabilities and shareholder’s equity.
To prepare: The statement of cash flows for 2017 using the indirect method.
(b)
Free cash flow describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.
To determine: The free cash flow.
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Managerial Accounting, Binder Ready Version: Tools for Business Decision Making
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