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Give an opinion on whether you would have used the same method to present the statement of cash flows. What changes would have been made if the company had chosen to use the other method available?

Find a recent annual report for a firm with business acquisitions (e.g., Compaq, GE). Locate the firm's consolidated statement of cash flows and answer the following:

Does the firm employ the direct or indirect method of accounting for operating cash flows?

How does the firm account for the balances in balance sheet operating accounts (e.g., accounts receivable, inventory, accounts payable) in determining operating cash flows?

Describe the accounting for cash paid for business acquisitions in the statement of cash flows.

Describe the accounting for any noncontrolling subsidiary interest, acquired in-process research and development costs, and any other business combinationrelated items in the consolidated statement of cash flows.