Which of the following statements describes the direct method of the statement of cash flows?

$(10$ Points$)$

It reports the major classes of net cash flows from operating activities by listing all major operating cash receipts and payments.

It requires that net income and net cash flow from operating activities be reconciled through a series of adjustments.

It shows all cash and noncash activities that impact the ability to pay interest and dividends on corporate capital.

It only shows cash flows from operating activities and excludes cash flows from financing and investing activities.