3 334 points eBook As consultants in advisory services at an accounting firm, we are hired by management of Gadberry to advise on cash flow reporting. Management is concerned about the relatively small net increase in cash, and how the company is doing compared to competitors Nessly and Tootsey. The following Tableau Dashboard will assist in our analysis. $50,000 Pret $40,000 References $30,000 $20,000 $10,000 Cash Flows for Competing Companies Gadberry Nessly Tootsey Tootsex 50 Financing Activities: $40,000 $(10,000) $(20,000) $(30,000) $(40,000) Operating Activities Investing Activities Financing Activities $(50,000) Gadberry Net Income (Loss) for Competing Companies Nessly Tootsay $(40,000) $(30,000) $(20,000) $(10,000) $0 $10,000 $20,000 $30,000 $40,000 Net Loss Net Income +ableau 1. Management wants to know how the reported net cash provided by operating activities will differ under the direct method and Indirect method. Which of the following is an accurate explanation? 2. During the year, Gadberry acquired a new building by issuing a note. Where on the statement of cash flows is this transaction reported? 3. Management is wondering how Nessly, which nearly went out of business this year, has a higher total net increase in cash than Gadberry. Further, Gadberry management claims that it had a great year and is expanding. Which of the following would explain Nessly's higher Increase in cash? 4. Gadberry management is wondering how Tootsey, which just opened for business this year, has a higher total net increase in cash than Gadberry. Gadberry management claims that it had a great year and is expanding. Which of the following would explain Tootsey's higher increase in cash? 1. Which of the following is an accurate explanation? 2. Where on the statement of cash flows is this transaction reported? 3. Which of the following would explain Nessly's higher increase in cash? 4. Which of the following would explain Tootsay's higher increase in cash? Cash provided by investing activities is typically higher under the indirect method. Cash provided by operating activities is the same under both the direct and indirect methods; only the presentation differs. Cash provided by operating activities is typically higher under the direct method. Cash provided by operating activities is typically higher under the indirect method.