Dear Professor Stiner,

Thank you for your message.

I got your message from Professor Shiina.

HOMEWORK:1

American investors respond to changes in cash flows.

Stockholders study cash flow to predict dividends.

Cash flow information helps creditors decide if

they will be repaid. U.S.creditors will not lend funds

if they believe they can't recover them.

HOMEWORK:2

<Operating Activities>

(Direct) (Indirect)

Independently analyzes each Starts with Net Income on the balance

sheet account for changes Income Statement. Cash transactions

caused by cash transactions. omitted from income are included.

Non-cash trnsactions included in income are removed.

This is a "reconciliation to Net Income."

The amount of cash provided by or used by operating

activities is the same no matter which method is used.

<Most commonly used by companies>

(Direct) (Indirect)

No. If this method is used, Yes. No reconciliation necessary.

companies must show a reconciliation to Net Income in the footnotes.

<Method recommended by FASB>

(Direct) (Indirect)

Yes. No.

HOMEWORK:3

I didn't understand it. I'm sorry.　

Sincerely yours,

Mayo

Dear Mayo,

Thank you for your message.

We have had a week of beautiful autumn weather, with cool nights,

sunny days with blue skies, and the leaves turning red and gold.

Sincerely,

> HOMEWORK:3

> I didn't understand it. I'm sorry.

　It is very complicated.