Lesson9


Dear Professor Garreis,

Thank you for your reply and corrections of my English
I will answer your last questions.



What is the biggest holiday in Japan?
How do you celebrate it?
>Japan has a National Foundation Day.
It is February 11. It is a day for fostering
patriotism and pondering on the origin of Japan.

>How do you celebrate National Foundation Day.


【HOME WORK】
1.  Why is the Statement of Cash Flows important to U.S. users of accounting information?

Because the third principal financial statement is the statement of cash flows.   

This statement reports the net cash flows relating to operating, investing, and financing activities for a period of time.
>ANSWER: The Statement of Cash Flows is important to US users of accounting information for several reasons.

1. It shows the health of the company now and may show its health in the future.

2. It shows if the company can meet its dividend payments now and in the future.

3. It shows the company's ability to pay its liabilities when due.

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 also presents the calculation process until the net income comes out.
The indirect method can be presented with omitting the calculation process of net income.
Both direct and indirect methods can be used.
>I will accept this answer. 

b. in investing activities?
An indirect method can be used.

c. in financing activities?
An indirect method can be used.

3.    How do Japanese companies report their changes in cash during the year?
We have same statement of Cash flows.

4. How easy was this lesson for you?
Somewhat hard 

Have a nice summer vacation!!

I’m waiting for your reply.
Sincerely, yours
tomo


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