Rasmussen College Financial Accounting Solution & Cash Flow Statement Using an Indirect Method You are an employee of a full service bookkeeping and auditing firm called Accounting Solutions. You have a client named Dan. Dan owns Dans Dependable Delivery, a national delivery service. Dan asks you to prepare a cash flow statement for the business. For this assignment, you will:
Prepare a Statement of Cash Flow for Dans Dependable Delivery using an indirect method.
In a short paragraph, explain the cash flow statement to Dan. How is his company doing? Address operating, investing and financing activities. Does cash flow from operating activities cover cash flow from investing and financing activities? What does this mean?
Use this Module 04 Excel template.
Using an indirect method, complete the Statement of Cash Flow on the first spreadsheet page. Some accountants like to use a worksheet to help them prepare the operating activities section.
The second page has a worksheet which is optional. If you are having trouble with the increases and decreases in the operating section, the spreadsheet will be helpful, and you should complete it.
After the Statement of Cash Flow is complete, Dan would like you to explain the cash flow statement to him. Remember, always use formulas in the cells when calculations are needed.
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