Northrop Grumman Corporation; interpreting direct and indirect methods.

a. Refer to Exhibit 4.34 for Northrop Grumman, which shows excerpts from its Statements of Cash Flows, with cash flow from operations presented with the indirect method, for three recent \earv Write a short mo more than 50 wards) explanation of why Northrop Grumman's cash flow from operations declined b\ about 20 percent per year between Years 7 and 8 and then again between Years 8 and 9. If you cannot explain, then explain w h\ that might be.

b. Refer to Exhibit 4.35 for Northrop Grumman, which shows excerpts from its Statements of Cash Flows, with casta flow from operations presented with the direct method, for three recent \ears. the same \ears as in part

a. Write a short (no more than 50 words) explanation of wh> Northrop Grumman's cash flow from operations declined by about 20 percent per >ear between Years 7 and 8 and then again between Years 8 and 9. If you cannot explain, then explain why that might be.

c. Which method of presenting cash flow from operations do you find easier to interpret ?