"Prepare a forecasted statement of cash flows for 2017 using the indirect method. Assume the following:• Operating expenses for 2017 (such as general and administrative) include depreciation and amor-tization expense of $522 million.• The company did not dispose of or write-down any long-term assets during the year.• The company paid dividends of $159 million in 2017."

Question

05-02-2020
Business

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"Prepare a forecasted statement of cash flows for 2017 using the indirect method. Assume the following:• Operating expenses for 2017 (such as general and administrative) include depreciation and amor-tization expense of $522 million.• The company did not dispose of or write-down any long-term assets during the year.• The company paid dividends of $159 million in 2017."

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abdulmajeedabiodunac abdulmajeedabiodunac · Answer 1 · 2020-02-06T15:09:56+01:00

Answer:

The question is not complete.As it is the practice cash flows statement is usually prepared from income statement and statement of financial position(balance sheet)

Find in the attached excel file the income statement and the balance sheet that complements the question as well as the requirement to prepare a cash flow statement

Explanation:

Note the closing cash and cash equivalents is $206m which equals the cash and cash equivalents on the balance sheet.