1. what is the Statement of cash flow using the indirect method.

a.Is the company effective in its cash flow management?

b.Is the company prepared for the future strategically?

c.Are the creditors happy?

d.Are the investors happy?

45 minutes only

The president of ABC Company, Mr. Diego San Juan, wanted to determine how the company has been doing with respect to its cash flows for the year. The president asked the finance manager, Mr. Joe de la Cruz, to explain the cash flows of the company from January 1 toDecember 31, 2019. Below is the Balance Sheet and Income Statement of ABC Company for the periods January 1 and December 31, 2019. Jan-01 Dec-31 Current Assets: Cash 20 25 Accounts Receivable 52 58 Merchandise Inventory 79 81 T. Current Assets 151 164 Noncurrent Assets Plant & Equipment 400 415 Accum. Depreciation -240 -252 Land 15 17 TOTAL ASSETS 326 344 Current Liabilities Accounts payable 62 65 Interest payablle T. Current Liab. 58 59 NCLiab & Equity Mortgage payable 50 55 Ordinary Share Capital 120 130Retained Earnings 78 90 T. Liab. & R. Earnings 326 344 Income Statement Sales 200 Cost of Goods Sold 80 Wages and Salaries 26 Depreciation Expense 20 Interest Expense 8 Other cash expenses 27 Total Expenses 161 Operating Income 39 Gain on sale of Equipment 3 Net Income 42 Ret. Earnings Beg. 78 Dividends -30 Ret. Earnings End 90 REQUIRED: 1. Prepare a Statement of Cash Flow using the INDIRECT METHOD.-60% You can answer at the bottom of this page or you can attache another. 2. Answer the following questions and briefly explain your answer. You can answer these in the Quiz that I will post in the Google classroom 20 points a. Is the company effective in its cash flow management? b. Is the company prepared for the future strategically? c. Are the creditors happy? d. Are the investors happy