(a) The direct method may be used to report cash provided by operations.

(b) The statement shows the cash provided (used) for three categories of activity.

(c) The operating section is the last section of the statement.

(d) The indirect method may be used to report cash provided by operations. During the introductory phase of a company's life cycle, one would normally ex- pect to see:

(a) negative cash from operations, negative. cash from investing, and positive cash from financing.

(b) negative cash from operations, positive cash from investing, and positive cash from financing.

(c) positive cash from operations, negative cash from investing, and negative cash from financing.

(d) positive cash from operations, negative cash from investing, and positive cash from financing. Questions 9 and 10 apply only to the indirect method.

AppendixLO1