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( ANSWER QUESTION WITH DIRECT METHOD ) ( NOT INDIRECT METHOD ) LAG Network Inc. ' s balance sheet and income statement are as follows:
ANSWER QUESTION WITH DIRECT METHODNOT INDIRECT METHOD LAG Network Inc.s balance sheet and income statement are as follows: Additional information regarding LAG Network Inc.s activities during : a Equipment is purchased for $ cash. b common shares are issued for cash at $ per share. c Declared and paid $ of cash dividends during the year. Other information regarding LAG Network Inc.: a All sales are credit sales. b All credits to accounts receivable are receipts from customers. c All purchases of merchandise are on credit. d All debits to accounts payable result from payments for merchandise. e Other operating expenses are cash expenses. f The only decrease in income taxes payable is for payment of taxes. Required: Prepare a statement of cash flows for using the DIRECT METHOD to report cash inflows and outflows from operating activities. List any deduction in cash and cash outflows as negative amounts.
ANSWER QUESTION WITH DIRECT METHODNOT INDIRECT METHOD
LAG Network Inc.s balance sheet and income statement are as follows:
Additional information regarding LAG Network Inc.s activities during :
a Equipment is purchased for $ cash.
b common shares are issued for cash at $ per share.
c Declared and paid $ of cash dividends during the year.
Other information regarding LAG Network Inc.:
a All sales are credit sales.
b All credits to accounts receivable are receipts from customers.
c All purchases of merchandise are on credit.
d All debits to accounts payable result from payments for merchandise.
e Other operating expenses are cash expenses.
f The only decrease in income taxes payable is for payment of taxes.
Required:
Prepare a statement of cash flows for using the DIRECT METHOD to report cash inflows and outflows from operating activities. List
any deduction in cash and cash outflows as negative amounts.
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