1. Which of the following identifies a key difference between the direct method and the indirect method of the statement of cash flows?
The indirect method begins with net sales.
The indirect method begins with net income.
The direct method shows a larger amount for cash from operating activities.
The direct method begins with gross sales.
2. Which factor would contribute to negative cash after operations on the statement of cash flow?
Taxes paid
High leverage
Dividends paid
Sales growth