Avatar Company Uses the Direct Method to Prepare Its Statement

question 77

Essay

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014:
Additional information provided:
Please prepare a complete statement of cash flows using the direct method, in the following format:

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Definitions:

Interpretive Rules

Interpretive Rules are administrative rules issued by governmental agencies to clarify or explain existing statutes or regulations without creating new obligations.

Legislative Rules

Regulations issued by government agencies based on the authority derived from statutes, which have the force of law.

Enabling Legislation

Laws passed by a legislative body that grant specified powers or authority to an entity or individual to carry out specific actions.

Administrative Procedure Act

A U.S. federal statute that governs the way administrative agencies of the federal government may propose and establish regulations.