Dear Professor Garreis,
Thank you for your reply and corrections of my English.
Homework
1.Why is the Statement of Cash Flows important to U.S. users of accounting information?
Because stockholders study cash flow to predict dividends and the long-term health of the company.
Another reason is that Cash flow information helps creditors decide if the borrower can repay the loan.
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
In operating activities, the direct method analyzes each cash transaction but, under the indirect method, individual transactions are not analyzed.
Companies usually use the direct method because it is briefer than the other method.
3.How do Japanese companies report their changes in cash during the year?
Japanese companies report their changes in cash by indirect methods.
4.How easy was this lesson for you?
The accounting was about right.
The English was somewhat hard.
Getting to and using the linked web pages was somewhat easy.
I'm waiting for your reply.
Sincerely.
Atsushi