Using the direct method rather than the indirect method of preparing the statement of cash flows will cause

1. the operating activities section to be structured differently.
2. the investing activities section to be structured differently.
3. the financing activities section to be structured differently.
4. all sections of the statement of cash flows to be structured differently.

2. Using the direct method, the first item usually reported in the operating activities section of the statement of cash flows is

1. net income.
2. net change in cash.
3. cash inflows from collections from customers.
4. none of these choices.