Refer to the financial statements for Allied Products in Problem 15-14. Since the Cash account decreased substantially during 2008, the company’s executive committee is anxious to see how the income statement would appear on a cash basis.
Required:
1. Using the direct method, adjust the company’s income statement for 2008 to a cash basis.
2. Using the data from (1) above and other data from the problem as needed, prepare a statement of cash flows for 2008.