The statement of income of Cantor Industries Ltd. for the year ended December 31, 2015, is as follows:

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  1. Using the information from Problem 16-4B, prepare a statement of cash flows for Lim Garden Supplies Inc. using the direct method of presenting cash flows from operating activities.

  2. How does Lim Garden Supplies’ cash flow compare to its net income? Summarize the changes that caused the difference.

In problem 16-4B

The statement of income of Cantor Industries Ltd. for the year ended December 31, 2015, is as follows: