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(b) Prepare a statement of cash flows for Chapman Company for the
year ended May 31, 2012, using
the direct method. Be sure to support the statement
P5-7.
(Preparation of a Statement of Cash Flows and Balance Sheet)
Aero Inc. had the following balance sheet at December 31, 2013.
AERO INC.
BALANCE SHEET
DECEMBER 31, 2013
Cash $ 20,000

Accounts payable

Accounts receivable

21,200 Bonds payable 41,000

Investments

32,000 Common stock

$ 30,000

100,000

23-8
(SCF—Direct and Indirect Methods)
3
6
8
Comparative balance sheet accounts of Sharpe Company are
presented below.
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