Use the Following Information to Prepare a Statement of Cash

question 98

Essay

Use the following information to prepare a statement of cash flows (direct method) for Ames Corporation for the year ended December 31, 2017.

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Definitions:

Capital Balances

The amount of money that partners or shareholders have invested in a company; this also includes profits that have not been withdrawn.

Accounts Receivable

Funds that a business has yet to receive from its clients or customers for products or services already provided.

Fair Value

The estimated market price of an asset or liability, reflecting the price at which an orderly transaction would take place between market participants at the measurement date.

Balance Sheets

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, giving insight into its financial position.