Worksheet and Statement – Use the information presented in P22-13 for the Farrell Corporation.

Required

  1. Using the direct method for operating cash flows, prepare a worksheet (spreadsheet) to support a 2007 statement of cash flows. (Hint: Combine the income statement and December 31, 2007 balance sheet items for the adjusted trial balance. Use a retained earnings balance of $291,000 in this adjusted trial balance.)
  2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
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