Response to the following questions:
1. Name five common major classes of operating cash receipts or operating cash payments presented on the statement of cash flows when the cash flows from operating activities are reported by the direct method.
2. On its income statement for a recent year, Time Warner reported a net loss of $4.9 billion from operations. On its statement of cash flows, it reported $5.3 billion of cash flows from operating activities. Explain this apparent contradiction between the loss and the positive cash flows.