Your friend is in business and wants your advice on preparing and interpreting the statement of cash flows for 2014. 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.
Definitions:
Cash
Currency and coins, along with bank balances, checks, and money orders, readily available for use in transactions.
Latent Functions
Purposes and activities that are unintended, unrecognized, and not immediately obvious.
Manifest Functions
Purposes and activities that are intended, recognized, and clearly evident.
Expressive Functions
The social and emotional roles that contribute to the cohesion and emotional well-being of a family or group, serving to nurture and maintain interpersonal bonds.
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