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Given the following information, prepare a Cash Flow Statement for Oracle Corporation for the year ending December 31, 2023: Net income: $3,500,000 Depreciation expense: $700,000

Given the following information, prepare a Cash Flow Statement for Oracle Corporation for the year ending December 31, 2023:

  • Net income: $3,500,000
  • Depreciation expense: $700,000
  • Increase in accounts receivable: $350,000
  • Decrease in inventory: $140,000
  • Increase in accounts payable: $250,000
  • Purchase of equipment: $1,800,000
  • Issuance of common stock: $900,000

Required:

  1. Prepare the Cash Flow Statement using the indirect method.
  2. Discuss the significance of cash flow from operating activities.
  3. Explain how the Cash Flow Statement complements the Income Statement and Balance Sheet in financial analysis.

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