Problem: Is there a difference between direct and indirect methods to make a statement of cash flows? Discuss and note two or three specific differences. In addition, clearly
- Distinguish between cash flows from operating activities and cash flows from investing activities.
- Compare the statement of cash flows with income statement using terms of net income and cash at end of the year.
- Which of the two financial statements is the better one? Explain your reasoning.
Show formula for computations, compare two financial statements, discuss the results, and include references.