Dear Professor Stiner,
Thank you for your message. I have received the summary
but I haven't finished reading.
I have gone through the contents of the cash flows statement
and I found that it was quite difficult to understand. Especially on
the Accounting News In Japan. I wish that you could teach me the
easiest way to understand the contents. Thank you.
These are the answers for the question:
1. The Statement of Cash Flows so important to U.S users of accounting
information because they respond to changes in cash flows and the
stockholders study cash flows to predict dividends and it also helps
creditors decide if they will be repaid.
2. The main difference between the indirect and direct methods of
developing cash flow statements is each balance sheet account for
changes caused by cash transactions for direct methods where as for
indirect method it starts with Net Income on the Income Statement and
cash transactions are omitted from income and it's a reconciliation
to Net Income.
3. I am not sure about the answers of this question because the scope
of it is too wide.
Sincerely Yours,
Wong