Kennedy, Inc. Reported the Following Data

question 61

Essay

Kennedy, Inc. reported the following data:
Prepare the cash flows for operating activities under the indirect method as it would appear on the statement of cash flows.

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Definitions:

Operating Capacity

The maximum output that a company can produce under normal conditions within a given time period.

Undrawn Borrowing Facilities

Credit facilities available to an entity that have not yet been utilized or drawn down.

Cash Receipts

Money received by a business during a particular period, including revenues from sales, loan proceeds, and cash from other sources.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.