Discuss and answer at least two of the questions listed below in detail.

Review: What is the purpose of the statement of cash flows? Why would we want to convert accrual basis net income to cash basis when creating the statement of cash flows? Differentiate between these three activities: operating, financing, and investing. Provide at least two examples of each.

What are the two methods to prepare the cash flow statement? Discuss in detail how cash operating activities are determined in both methods. Describe the whole process.

What are some of the arguments in favor of using the Direct Method as opposed to the Indirect Method?