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Companies are given the choice as to whether to use the direct or indirect method for their cash flows statement per FASB issued SFAS 95

Companies are given the choice as to whether to use the direct or indirect method for their cash flows statement per FASB issued SFAS 95 on the statement of cash flows. FASB encourages yet does not require the use of the direct method. The majority of companies, however, ignore this encouragement and prepare their statement using the indirect format. Why do you think that companies would prefer the indirect format method? What are the challenges of using this format

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