Your Friend Is in Business and Wants Your Advice on Preparing

question 3

Essay

Your friend is in business and wants your advice on preparing and interpreting the statement of cash flows for 2016.
Information regarding the business is as follows:
Required:
a. Based upon the above information, prepare the statement of cash flows using the direct method.
b. Explain what has happened during the year.

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Definitions:

Tort

A civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Public Figures

Individuals who are in the public eye, often due to their professions or activities, and as a result, they have a reduced expectation of privacy in aspects related to their public roles.

Defamation

The practice of harming an individual's reputation through the dissemination of untrue and detrimental remarks.

Humorous

Characterized by the quality of being amusing or entertaining, often involving a sense of wit.