Preparing and interpreting a statement of cash flows using a columnar work sheet.

Kxhihit 4.24 presents a comparative balance sheet for Swan Corporation as of the beginning and the end of the current year. The firm made no dispositions of property, plant, and equipment during the year, nor did it declare or pay dividends.

a. Prepare a columnar work sheet for the statement of cash flows for Swan Corporation for the current year (see the upper panel of Exhihit 4.4 for the desired format).

b. Prepare a statement of cash Hows for the current sear using the indirect method of computing cash flow from operations.

c. Comment on the pattern of cash flows from operating, investing, and financing activities.