For the current year, Bearings Company decided to switch from the indirect method to the direct method
Question:
For the current year, Bearings Company decided to switch from the indirect method to the direct method for reporting cash flows from operating activities on the statement of cash flows. Will the change cause the amount of net cash flow from operating activities to be
(a) Larger,
(b) Smaller, or
(c) The same as if the indirect method had been used? Explain.
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Step by Step Answer:
It will be the same as if the indirect method was still used bec...View the full answer
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Related Book For 
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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