Statement of Cash Flows—Indirect Method Refer to all of the facts in Problem 12-11.

Required 1. Prepare a statement of cash fl ows for 2010 using the indirect method in the Operating Activities section.

2. Evaluate the following statement: Whether a company uses the direct or indirect method to report cash fl ows from operations is irrelevant because the amount of cash fl ow from operating activities is the same regardless of which method is used.

AppendixLO1