Below is information from the Biddle Company income statement and current assets and current liabilities from the balance sheet as of December 31, 2017 and 2018.

Questions

  1. Prepare the cash flows from operating activities section of the company’s 2018 statement of cash flows using the direct method.
  2. Prepare the cash flows from operating activities section of the company’s 2018 statement of cash flows using the indirect method.
  3. Compare the two statements of cash flows and comment on the differences.