Respond to the following questions thoroughly, in 150-300 words for each question.
1. Some might argue that the statement of cash flows is an optional financial statement and does not provide critical information needed for a firm or investor to succeed. Do you agree with this statement? Why or why not?
2. There are two methods for constructing the statement of cash flows: the direct method and the indirect method. What are the similarities and differences between the two methods? Which of the two is most preferred? Which is required by FASB?