Compared to the statement of cash flows discussed in chapter 12 in accordance to U.S. GAAP (Figure 12.1):

• Make one initial post to identify and explain (1) one similarity and (2) one difference in the classification of cash flow activities. (Hint: Look in the investing activities section or the financing activities section because the operating activities are prepared using the "indirect method" that you don't need to know. Don't waste time trying to understand the items that you are not familiar. Focus on those discussed in chapter 12. For example, for similarity: "Purchase of property, plant and equipment" is classified as an investing activity under GAAP and it is also classified as an investing activity under IFRS. This is because property, plant, and equipment are long-term assets. Do NOT use this example in your post. Also, do not search Internet, this is NOT a discussion on the differences between IFRS and GAAP in general.

Operating activities Candy Time Candy TYPES OF CASH INFLOWS AND OUTFLOWS Operating activities-Income statement items Cash inflows: From sale of goods or services. From interest received and dividends received. Cash outflows: To suppliers for inventory. To employees for wages. To government for taxes. To lenders for interest. To others for expenses. Investing activities-Changes in investments and long-term assets Cash inflows: From sale of property, plant, and equipment. From sale of investments in debt or equity securities of other entities. From collection of principal on loans to other entities. Cash outflows: To purchase property, plant, and equipment. To purchase investments in debt or equity securities of other entities. To make loans to other entities. Financing activities-Changes in long-term liabilities and stockholders' equity Cash inflows: From sale of common stock. From issuance of debt (bonds and notes). Cash outflows: To stockholders as dividends. To redeem long-term debt or reacquire capital stock (treasury stock). Time Investing activities Stock Bond Financing activities