Concept explainers
1 (a)
Prepare a statement of cash flows for the year ended December 31.2011, by using direct method.
1(b)
Prepare a statement of cash flows for the year ended December 31.2011, by using indirect method.
2.
Explain the reason for which the statement of cash flows is important to the company and to parties external to the company.
3.
State if direct or indirect format of cash flow statement is preferred.
4.
Evaluate the manner in which the company will spent its cash during the year and identify whether the company is in a sound financial position.
5.
Compute the
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