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How do I prepare this indirect statement of cash flows? The management team of Brimmer Brothers Inc. is preparing its annual financial statements. The statements

image text in transcribedHow do I prepare this indirect statement of cash flows?

The management team of Brimmer Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized Current Year Prior Year Balance Sheet Assets Cash Accounts Receivable Merchandise Inventory Property And Equipment Less: Accumulated Depreciation 50,000 80,000 60,000 110,000 130,000) $ 72,000 70,000 65,000 60,000 115,000) Total Assets Liabilities: Accounts Payable Salaries and Wages Payable Notes Payable, Long-Term 10,000$ 12,000 1,000 60,000 2,000 50,000 Stockholders' Equity 100,000 108,000 80,000 99,000 Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Cost of Goods Sold Depreciation Expense Other Expenses Net Income $200,000 110,000 15,000 50,000 25,000 Other information from the company's records includes the following Bought equipment for cash, $50,000 Paid $10,000 on long-term note payable Issued new shares of common stock for $20,000 cash Cash dividends of $16,000 were declared and paid to stockholders Accounts Payable arose from inventory purchases on credit. Income Tax Expense ($4,000) and Interest Expense ($3,000) were paid in full at the end of both years and are - " included in Other Expenses. Required Part a. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures Part b. Interpret the statement of cash flows by explaining the main sources and uses of cash during the year

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