Statement of Cash Flows Using a Work Sheet—Indirect Method (Appendix)

Refer to all of the facts in Problem 12-1A.

Required 1. Using the format in the chapter’s appendix, prepare a statement of cash fl ows work sheet.

2. Prepare a statement of cash fl ows for 2010 using the indirect method in the Operating Activities section.

3. Briefl y explain how Madison was able to increase its cash balance during a year in which it incurred a net loss.

AppendixLO1