The
thirteenth message
Dear Professor Garreis.
Thank you for your reply and corrections of my English.
I will answer your questions.
Homework
1. Why is the Statement of Cash Flows important to U.S. users of
accounting information?
Stockholders want the main business of the company to increase cash.
U.S. investors respond to changes in cash flow. Stockholders study cash
flow to predict. Most dividends are paid in cash. Liabilities are repaid
in cash.
2. Look at the table that compares the direct and indirect methods.
What is the main difference between the indirect and diretct and
direct methods:
a. in operating activeties?
The amount of cash provided by or used by operating activities
indirect method is used.
b. in investing activities?
No differences.
c. in financing activities?
No differences.
3. How do Japanese companies report their changes in cash during the
year?
I think that is the same as U.S.A.
I'm waiting for your reply.
Sincerely yours,
Cong Ming