Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants. Listed below in random order are line items to be included in the statement of cash flows. Purchase of equipment $229,000
Increase in inventory 27,000
Increase in prepaid rent 5,500
Payment of dividends 32,000
Depreciation expense 10,000
Increase in accounts receivable 49,000
Increase in accounts payable 18,000
Loss on sale of land 15,000
Net income 63,000
Repayment of notes payable 44,000
Cash received from the sale of land 6,000
Issuance of common stock 248,000

Required:
Prepare the statement of cash flows for CEO Consultants using the indirect method.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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