Avatar Company Uses the Indirect Method to Prepare Its Statement

question 134

Essay

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

---

Definitions:

End-of-Month Inventory

The valuation of all unsold goods, raw materials, and work-in-progress held by a company at the end of the month.

Sales Data

Information related to the quantity sold, revenue generated, and patterns of sales within a specific period.

Production Budget

A plan that outlines the expected production volume, based on sales forecasts and inventory policies.

Expected Sales

The projected amount of sales, in units or financial terms, that a company expects to achieve within a certain period.