Based on the given information from PA12-4 (pp.603-604) in your textbook, complete the following

Statement of Cash Flows using the Indirect Method

Notes: -place negative amounts or balances in parentheses/brackets. Example: (100)

-when entering the amounts or balances, omit or do not include the dollar sign and penny value

or decimal point

-use comma to separate numbers/amounts/balances greater than 999. Example: 1,850

  

604 CHAPTER 12 Statement of Cash Flows LO 12-6 LO 12-3, 12-4, 12-5, 12-6 LO 12-S1 PA12-5 Computing Cash Flows from Operating Activities (Direct Method) Refer to the information in PA12-2. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. PA12-6 Preparing and Interpreting a Statement of Cash Flows (Direct Method) Refer to PA12-4. Required: Complete requirements 1 and 2 using the direct method. PA12-7 (Supplement 12A) Preparing and Interpreting a Statement of Cash Flows with Loss on Disposal (Indirect Method) Assume the same facts as PA12-4, except for the income statement and additional data item (a). The new income statement is shown below. Instead of item (a) from PA12-4, assume that the company bought new equipment for $1,800 cash and sold existing equipment for $500 cash. The equipment that was sold had cost $1,300 and had Accumulated Depreciation of $250 at the time of sale. Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Loss on Disposal of Equipment Income Tax Expense Net Income $37,500 35,000 500 550 200 $ 1,250 Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. 2. Use the statement of cash flows to evaluate the company's cash flows.