NOTE TO THE INSTRUCTOR

question 2

Essay

NOTE TO THE INSTRUCTOR:
The problem requirement does not indicate whether the indirect or direct method must be used to determine the net cash provided by operating activities.You can,if you choose,specify that either (or even both)methods be used.The solution contains solutions for both methods.
Dauber Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid a cash dividend of $55,000 during the year.It did not sell any long-term investments,issue any bonds payable,or repurchase any of its own common stock.
Required:
a.Construct in good form the operating activities section of the company's statement of cash flows for the year.
b.Construct in good form the investing activities section of the company's statement of cash flows for the year.
c.Construct in good form the financing activities section of the company's statement of cash flows for the year.

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Definitions:

Energy Resource

A natural or artificial source of power that can be converted into useful energy, such as fossil fuels, solar, or wind power.

Oil And Gas

Natural hydrocarbon resources extracted from the Earth, used as fuels and in the production of chemical compounds.

Coal

A combustible black or brownish-black sedimentary rock formed from ancient plant material, used as fuel.

Oil Shale

Oil shale is a type of sedimentary rock that contains kerogen, a solid mix of organic chemical compounds from which liquid hydrocarbons can be produced, like shale oil.