Assignment 1: Using the direct method, prepare a Statement of Cash Flows for the most recent year end.

Assignment 2: Using the indirect method, prepare a Statement of Cash Flows for the most recent year end.

Assignment 3: Identify the purposes of the Statement of Cash Flows

Assignment 4: Identify at least two financial situations that financial statement users can assess about an entity by using the Statement of Cash flows.

TCA Corporation a publicly-heid company. develops and sells software application programs. TGAs Statement of Income and Retained Earnings for the year ended December 31. 1992, and Comparative Statement of Finan- cial Positlon for 1991 and 1992 are presented below. During the year, additional equipment was acquired by TCA for $20.00o cash. TGA also soid equipment costing $9,500, with a book value of $5.500. for $3.000 TGA Corporation Statement of Income and Retained Eamings For the Year Ended December 31. 1992 On March 30, 1992, $100.000 or 10% convertible bonds, issuedat facevalue with Interet paymentdates ofJune 30 and December 31. were converted into 2.000 shares of TCA Corporation $40 par value common stock. The stock had a market value of S50 per share at the date of conversion. * Sales revenue Cost of goods soid Gross profit 180.00 TCA pald dividends of $8.000 during 1992 Operating expenses TCA issued an additional 100 shares of common stock 6.00056,000 124.000 for cash during 1992 Operating income Loss on sale of equipment Interest expense 2.500 Incoms belore taxes Nel income Retained earnings 119.000 Income tax expense 71.000 January . 1992 158.000 Cash drrdends pald Retatned carnings December 31. 1992 TCA Corporation Comparative Statement of Financial Position As of December 31. 1992 and 1991 $ 98.500 50.000 70.000 S 86.000 30.000 55.000 200.000 69.500 S 12.500 22000 15.c00 Accovnts receivable. net Inventory Plant and equipment Accumulated deprecialion 80,000 10.500 Total assets 83.000 27.000 Accounts payable Salaries payable Taxes payable 10% convertible bonds payable Common stock, $40 par value Additional paid-in capital Retained carnings 15.000 10.000 3.000 $ 20.000 7.000 13.000 100.000 160.000 40.000 $ (5.000) 3.000 10.000) (100,000) 84.000 21.000 63.000 56.000 244.000 61.000 Total llabilities & shareholders' equity $483.000