Homework:

1. American investors respond to changes in cash flows. Stockholders

study cash flow to predict dividends. And cash flow information helps

creditors decide if they will be repaid. U.S. creditors will not lend

funds if they believe they cannot recover them.

2. Direct method is independently analyzes each balance sheet non-

cash account for changes caused by cash transactions.

And most commonly didn't use by companies. If this method is used,

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

method recommended by FASB.

Indirect method is starts with Net Income on the Income Statement and

Cash transactions omitted from income are included and non-cash

transactions included in income are removed and this is called a

"reconciliation to Net Income."

Most commenly used by companies. No reconciliation necessary.

Method don't recommende by FASB.

3. I don't open the web.

I'm sorry.