Dear Den,

 

Thank you for your eleventh message.  My comments follow.

 

Sincerely,

Prof Sue Stiner

 

Masaki Inden wrote:

> Dear Prof. Stiner,

>

> Thank you for your reply!

>

> Is he a singer?Does he play an instrument?

>

> His part is a snare drum and a percussionist.

> 

> Does he have a web site?

>

> It is here.

> http://www.j-two.co.jp/p_NI.html

 

Nice web site!

 

I have information.

 

Ken was in a car accident.

 

>There is no injury.

> Therefore, he cannot send mail today.

 

So sorry to hear he was in a car accident.  So glad to hear he is ok.

Say hi for me.

 

Sincerely,

Prof. Sue Stiner

>

> Homework

>

> 1.Why is the Statement of Cash Flows important to U.S. users of

> accounting information?

>

> Because, Stockholders want the main business of the company to increase

> cash. 

> Healthy cash flow means a company receives more cash than it spends.

> Healthy cash flow makes the company very stable today.

> Healthy cash flow lets the company grow in the future.

> U.S. investors respond to changes in cash flows.

 

Correct!

 

>

> 2.Look at the table that compares the direct and indirect methods.

> What is the main difference between the indirect and direct methods:

>           

> a.in operating activities?

>

> The direct Method Independently analyzes the changes that cash

> transactions cause in each balance sheet non-cash account.

>

> The indirect Method Starts with Net Income on the Income Statement.

> Cash transactions omitted from income are added.

> Non-cash transactions included in income are removed.

 

Correct!

>

> b.in investing activities?

>

> It is no differences.

There is no difference.

>           

> c.in financing activities?

>

> It is no differences.

There is no difference.

 

Correct!

>

> 3.How do Japanese companies report their changes in cash during the

> year?

>

> Cash flow of Japan is the same as the United States from 1999 year.

 

Correct.

>

> Sincerely,

> Den

 

What was the most interesting thing you did this week?

 

The new lesson is here:

http://www72.homepage.villanova.edu/susan.stiner/cgu/CPArole04.htm

 

This week we talk about the role of the CPA in the United States.

 

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