Currently in my class we are covering direct and indirect cash flow methods. I am in the military and don't really a lot of time to sit down and read, so i'm basically lost in regards to how to start the problems and set them up in statement forms. If we could go through this problem and explain step-by-step what is happening I'd really appreciate it. The class is accelerated. Here is a typical problem we have to solve. Given the information we would have to:

a.) Prepare the statement of cash flow using the direct method for year ended December 31 20X3

b.) Prepare the statement of cash flow under the indirect method for the year ended December 31 20X3

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