Preparation of cash flow statement-direct and indirect, Finance Basics

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Preparation of cash flow statement-direct and indirect

Question: [Preparation of cash flow statement-direct and indirect methods: CFAC adapted) The balance sheet and income statement for the Green Company are presented in Exhibit 3P-2.

a. Based on the financial statements provided. prepare a statement of cash flows for 2001 using the

(i) Indirect method

(ii) Direct method

b. Calculate the company's free cash flow,

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