The following cash flow information pertains to the 2008 operations of Divemaster, Inc., a maker of scuba

Question:

The following cash flow information pertains to the 2008 operations of Divemaster, Inc., a maker of scuba diving equipment:

image text in transcribed

The following additional information comes from Divemaster’s 2008 income statement:

image text in transcribed

The following additional information comes from Divemaster’s 2007 and 2008 comparative balance sheets (decreases are in parentheses):

image text in transcribed

Required:
1. Use the preceding information to derive Divemaster’s 2008 income statement.
2. Use the same information to compute Divemaster’s 2008 cash flow from operating activities under the indirect method (that is, derive cash flow from operating activities by making the necessary adjustments to net income).
3. Provide a brief explanation for the difference observed between net income and cash provided by operating activities.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Reporting And Analysis

ISBN: 12

4th Edition

Authors: Lawrence Revsine, Daniel Collins

Question Posted: