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