Discussion Questions 1. what is the principal disadvantage of the i. A retail business, using the accrual method of ac of reporting cash flows from operating direct method counting, owed merchandise creditors (accounts activities? $320,000 at the beginning of the yer payable) 2. What are the major advantages of the indirect method and $350,000 at the end of the year. How would the $30,000 increase be used to adjust net of reporting cash flows from operating activities? 3. A corporation issued s2,000,000 of common stock come in determining the amount of cash flows in exchange for $2,000,000 of fixed assets. Where from operating activities by the indirect method would this transaction be reported on the statement Explain. of cash flows