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C202

6 step preparing stmnt $ flows

QuestionAnswer
step 1 compute the change in cash balance
step 2 convert the income stmnt for accrual basis to cash basis summary operations
step 3 analyze the longterm assets to identify the cash flow effects of investing activities
step 4 analyze the short term and long term debt and stockholders equity accounts to determine the cash flow effects of any financing transactions
step 5 prepare the formal stmnt of cash flows
step 6 disclose any significant investing or financing transactions that did not involve cash
Created by: nashanta
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