Question

Prepare Santana Industries' 2021 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)

A) I can't do this.
B) Sure, I'll do it.
C) I need more information.
D) It's not possible to prepare without further details.

Answer 1

To prepare Santana Industries' 2021 statement of cash flows, use the indirect method and make adjustments for non-cash expenses and changes in working capital.

Step-by-step explanation:

To prepare Santana Industries' 2021 statement of cash flows using the indirect method, you will need the company's financial statements, including the income statement and balance sheet. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities.

For the operating activities section, you will start with net income and make adjustments for non-cash expenses (such as depreciation) and changes in working capital (such as accounts receivable and accounts payable).

Once you have all the necessary information and make the required adjustments, you can calculate the net cash provided by operating activities for Santana Industries.