Problem 11-4 Lori Crump

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Lori Crump owns a small trucking operation. The bookkeeper presented Crump with the following income statements and balance sheets for 2010 and 2009.

***SEE SCREENSHOTS***

Crump does not understand how the company can be $17,600 ahead of last year in terms of cash on hand and yet show an $11,000 loss for the year.

Required:

Prepare a cash flow statement (indirect method) to use in explaining this to Lori Crump.

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