Suppose your company's income statement reports $160 of net income, and its comparative balance sheet indicates the

Question:

Suppose your company's income statement reports $160 of net income, and its comparative balance sheet indicates the following.

Suppose your companyâ€™s income statement reports $160 of net income,

Required:
1. Prepare the operating activities section of the statement of cash flows, using the indirect method.
2. Identify the most important cause of the difference between the company's net income and net cash flow from operating activities.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...