Chapter 10
The Statement of Cash Flow
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Assume current liabilities include only items from operations (e.g. accounts payable, taxes
payable). Non-current liabilities include items from financing (e.g. bonds and other non-
current liabilities).
Note that there was no sale of equipment throughout the year.
Prepare the cash flow statement for 2016 using the indirect method. Assume no dividends
were declared or paid in 2016.
