Dear Ken,

Thank you for your eleventh message.  My comments follow.

Sincerely,

Prof. Sue Stiner

 

Kenichi Ooami wrote:

 

> Dear Prof. Stiner

>

> Thank you for your reply!

>

This message is late.

 

No problem!

>

> I am fine.

 

I am so glad to hear that.

 

The car is totaled.

 

That means that the car cannot be used any more.  (Is that what you

meant to say?)

>

>

> Homework

>

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

> accounting information?

>

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

> cash. 

 

Correct!  Then the stockholders know they will continue to receive

dividends.

>

>

> 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?

>

There is no difference.

 

Correct.

>           

> c.in financing activities?

>

There is no difference.

 

Correct.

>

>

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

> year?

>

> It is Cash flow

 

Correct.

>

>

> Sincerely,

Ø       Ken

 

 

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