Use the selected data from the consolidated statements of cash flows for Vancouver Corporation for the years ended December 31, 2016 and 2015, to answer the questions that follow.
REQUIRED:
A What method does Vancouver use to calculate the net cash provided by operating activities?
B In 2016, why are depreciation and amortization expenses added back to net income in the operating activities section of the statement of cash flows?
Definitions:
Adjusted Trial Balance
A list of all accounts and their balances after adjustments have been made, used as the basis for preparing financial statements.
Adjusted Trial Balance
A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.
Drawing Account
An account used to record withdrawals of business assets by the owner for personal use, reducing the capital account.
Salary Expense
The cost incurred by a company for the payment of regular salaries to its employees.
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