Refer to all of the facts in Problem 12-6.
Required
1. Using the format in the chapter's appendix, prepare a statement of cash flows work sheet.
2. Prepare a statement of cash flows for 2012 using the indirect method in the Operating Activities section.
3. On the basis of your statement in part (2), draft a brief memo to the president to explain why cash increased during such an unprofitable year. Include in your memo your recommendations for improving the company's bottom line.