14. [Conversion of indirect to direct method cash flow state- ments; analysis of income and cash flow
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14. [Conversion of indirect to direct method cash flow state- ments; analysis of income and cash flow data; implications for valuation] Exhibit 3P-6 contains financial data for the Hamp- shire Company for 2000 and 2001. The following additional in- formation is provided: Hampshire is not subject to income tax. Year 2000 includes a restructuring charge of $125, of which $100 is a noncash inventory writedown included in COGS and $25 is severance payments included in SG&A. The severance payments were made in 2001.
a. Convert the 2001 indirect method statement of operating cash flows to the direct method.
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Related Book For
The Analysis And Use Of Financial Statements
ISBN: 9780471375944
3rd Edition
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
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