Use an online directory, such as http://www.411.ca or http://www.yellowpages.ca, to find a company in your area that has a website that includes an annual report, with a cash flow statement. Make an appointment with the controller or chief financial officer of the company. Before your meeting, find out as much as you can about the organization’s operations from its website.

Required:

After asking the following questions, write a brief memorandum to your instructor that summarizes the information obtained from the company’s website and reports what you found out during your interview.

1. Does the company use the direct method or the indirect method to determine the cash flows from operating activities when preparing its cash flow statement? Why?

2. How is the information reported on the cash flow statement used for decision-making purposes?