These are the financial statements of Copple, Inc.

Required:

A. Prepare Copples’s statement of cash flows using the indirect method.B. Prepare Copple’s operating section of the statement of cash flows using the direct method.C. Which statement do you believe provides the most relevant information for external users? For internal users? Why?

Transcribed Image Text:

Copple Company Income Statement For the Year Ended December 31, 2019 $181,500 124,000 $ 57,500 Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Rent Other operating expenses Net income $32,625 8,500 3,000 7,500 $ 51,625 $5,875