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please help with this I need answers on how to do the following: What is the principal disadvantage of the direct method of reporting cash
please help with this
I need answers on how to do the following:
- What is the principal disadvantage of the direct method of reporting cash flows from operating activities?
- What are the major advantages of the indirect method of reporting cash flows from operating activities?
- A corporation issued $2,000,000 of common stock in exchange for $2,000,000 of fixed assets. Where would this transaction be reported on the statement of cash flows?
- A retail business, using the accrual method of accounting, owed merchandise creditors (accounts payable) $320,000 at the beginning of the year and $350,000 at the end of the year. How would the $30,000 increase be used to adjust net income in determining the amount of cash flows from operating activities by the indirect method? Explain
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