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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Assignment Statement of Cash Flows

Assignment Statement of Cash Flows

Q Assignment: Statement of Cash Flows Scenario Below is information from the Biddle Company income statement and current assets and current liabilities from the balance sheet as of December 31, 2017 and 2018. Questions 1. Prepare the cash flows from operating activities section of the company’s 2018 statement of cash flows using the direct method. 2. Prepare the cash flows from operating activities section of the company’s 2018 statement of cash flows using the indirect method. 3. Compare the two statements of cash flows and comment on the differences.

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3.According to the direct technique of calculating a cash flow statement, operational activities consist of cash revenues received by the firm as well as cash payments made to vendors, costs, and so on. In the indirect method of calculating cash flow, the operational activities section of the statement comes first, followed by the net income, and then all of the non-cash elements are included in. For example; Depreciation and Gain on sale of assets. Additionally, any shifts in the present assets or liabilities should be added or subtracted as appropriate.