Problem 1
To compare statement of cash flow reporting under the direct and indirect methods, enter a check mark to indicate which items are used with each method.
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Cash Flows
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Statement of Cash Flows Method
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(and related changes)
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Direct
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Indirect
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1.
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Salaries payable increase or decrease
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2.
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Payments to employees
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3.
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Cash collections from customers
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4.
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Prepaid rent increase or decrease
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5.
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Payments to suppliers
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6.
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Inventory increase or decrease
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7.
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Utilities payable, increase or decrease
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8.
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Depreciation expense
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9.
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Net income
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10.
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Cash flows from operating activities
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11.
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Cash flows from investing activities
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12.
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Cash flows from financing activities
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13.
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Net increase or decrease in cash during the period
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