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1

Data needed to prepare the Statement of Cash Flows

1. Comparative Balance Sheets used in calculating the cash flows from al activities
2. A complete Income Statement (use primarily in calculating cash flows from operating activities
3. Additional details concerning selected accounts where the total change in account balances during the year does not reveal the underlying nature of the cash flows

2

Preliminary Steps in Preparing the Cash Flow Statement

1. Determine the change in each balance sheet account from the previous year's sheet to the current year.
2. Classify each change as relating to operating (O), investing (I) or financing (F) activities