Why did the answer say the indirect method does not report operating cash flows? What we've learned is SOCF has opearing, investing and financing activities.

Tam Co. reported the following items in its year-end financial statements: Capital expenditures Capital lease payments Income taxes paid Dividends paid $1,000,000 125,000 325,000 200,000 220,000 Net interest payments What amount should Tam report as supplemental disclosures in its Statement of Cash Flows prepared using the indirect method? Correct $545,000 $745,000 Your Answer $1,125,000 $1,870,000 This Answer is Correct Although the indirect method does not repo operating cash flows in the body of the statement, income taxes paid and interest payments must be disclosed in the notes or supplementary schedule. The total of these amounts is $545,000 ($325,000 + $220,000)