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Hello students, here is a question.
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Champman company, a major retailer of bicycle and accessory, operates several stores and is a publicity trade company.
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The comparative statement of financial position and income statement for champman as of may 31, 2019 are as follow.
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The champman company income statement for the year ended may 31, 2019 has been given in the question.
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So we are supposed to calculate, compare and contrast the direct method and the indirect method of reporting cash flow from operating activity.
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So let us start solving this problem.
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So champman company statement of cash flow for the year ended 31st december, 2019.
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Champman company statement of cash flow.
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So the first item is cash flow from operating activity.
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So that will be a net income.
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So net income is $130 ,000 and the second item is adjustment to reconcile net income to net cash provided by operating activity.
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Adjustments to reconcile net income to net cash provided by operating activity...