BTN 12-6 Team members are to coordinate and independently answer one question within each of the…

BTN 12-6 Team members are to coordinate and independently answer one question within each of the following three sections. Team members should then report to the team and confirm or correct teammates’ answers.

1.       Answer one of the following questions about the statement of cash flows.

a.       What are this statement’s reporting objectives?

b.      What two methods are used to prepare it? Identify similarities and differences between them.

c.       What steps are followed to prepare the statement?

d.      What types of analyses are often made from this statement’s information?

2.       Identify and explain the adjustment from net income to obtain cash flows from operating activities using the indirect method for one of the following items.

a.       Noncash operating revenues and expenses.

b.      Non-operating gains and losses.

c.       Increases and decreases in noncash current assets.

d.       Increases and decreases in current liabilities.

3.       .B Identify and explain the formula for computing cash flows from operating activities using the direct method for one of the following items.

a.       Cash receipts from sales to customers.

b.      Cash paid for inventory.

c.        Cash paid for wages and operating expenses.

d.      Cash paid for interest and taxes

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