Good morning, can you please help me on completing a cash flow statement using the direct and indirect method and completing the responses for letters A thru C please.

The SCQ Corporation manufactures specialty medical tools ranging from $10,000 to$15,000 per unit. The tools are used in hospitals, clinics, and the home hospitality

market.

Sales and balance sheet information for the years 2009-2010 are below:

Balance Sheet

SCQ Corporation

For period ending 12/31/2010

Assets 2010 2009 Liabilities 2010 2009

Cash 150 100

Account receivable 600 400 Accounts payable 400 300

Inventory 750 500 Accrued taxes payable 200 100

Current assets 1,500 1,000 Current liabilities 600 400

Land 50 50

Equipment 1,300 1,200 Note payable 330 300

Less: Acc. depreciation 700 600 Deferred taxes 35 20

Net fixed assets 600 600 Equity:

Total fixed assets 650 650 Common stock 640 500

Paid-in capital 80 80

Retain earnings 465 350

Total equity 1,185 930

Total assets 2,150 1,650 Total equity and liabilities 2,150 1,650

Income Statement

SCQ Corporation

For period ending 12/31/ 2010

Items 2010 2009

Revenue 1,000 900

Cost of goods sold 400 350

Gross profit 600 550

Wages expense 110 100

Interest expense 50 40

Depreciation expense 100 90

Insurance expense 50 50

Other misc. expenses 90 80

Total expenses 400 360

Operating income 200 190

Taxes:

Deferred taxes 15 20

Taxes expense 70 67

Net income after taxes 115 103

Additions to retains earnings 115 103

The information below can be used to complete the direct method of cash flow:

Cash flows from operating activities 2010

Cash receipts

Received from sales of goods 930

Paid for inventory 400

Paid for employees 110

Paid for interest 50

Paid for taxes 70

Paid for other expenses 320

Cash paid for equipment 100

Cash received for common stock 120

Cash received from note payable 30

Assignment Letters A thru C:

A. Indirect method cash flow/cash flow statement:

a. What is the operational cash flow?

b. What is the investing cash flow?

c. What is the financing cash flow?

B. Direct method cash flow:

a. What is the operational cash flow?

b. What is the investing cash flow?

c. What is the financing cash flow?

C. What are the differences in the cash flow concepts and procedures between the direct and indirect methods?