Refer to Research In Motions statement of cash flows in Appendix A (a) Which method is used to compute its net cash provided by operating activities (b) While its balance sheet shows an increase in working capital (current assets less current liabilities) from fiscal years 2009 to 2010, why is this...

a Indirect method b The increase in working capital represents an amount ...

Refer to Research In Motions statement of cash flows in Appendix A. (a) Which method is used

Question:

Refer to Research In Motion’s statement of cash flows in Appendix A.
(a) Which method is used to compute its net cash provided by operating activities?
(b) While its shows an increase in working capital (current assets less current liabilities) from fiscal years 2009 to 2010, why is this increase in working capital subtracted when computing net cash provided by operating activities for the year ended February 27, 2010?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...