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What companies use the direct method for statement of cash flows?
Wiki User
∙ 13y ago
I don't have a comprehensive list, but I can cite one direct method cash flow example - EMC Corporation (ticker NYSE: EMC). I too would welcome a list if anyone has one.
Wiki User
∙ 13y ago
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Which section is affected by the decision to use either the direct method or the indirect method to prepare the statement of cash flows?
The Operating Activities portion of the Statement of Cash Flows is affected by whether the direct or indirect method is used.
What is the advantage of the direct method of statement of cash flows?
It is easy to calculate
What and why are there two methods for preparing the statement of cash flows?
there are two methods of preparation:1 – Direct method2 – Indirect method
Is depreciation is integral part of cash flow statement?
Depreciation appears only in the operations section of an indirect-method cash flow statement or in a supporting schedule to the body of the statement of cash flows in a direct-method statement. Depreciation is one of the items that reconciles net income to net cash flow from operating activities. However, it does not appear directly on a direct-method cash flow statement because it does not directly affect cash
Does using the direct method of preparing a cash flow statement provide a higher cash flow result than the indirect method?
Actual cash flow remains the same no matter what method is used it is just the presentation of statement and method of calculated cash flows and it does not affect amount of cash flow
What activity is computed differently using the two methods of formatting a statement of cash flows?
Cash flow from operating activity is the only activity which is calculated using two different methods that is direct method and indirect method while other two cash flows are calculated in same manner in both of methods.
When using the Indirect Method how is depreciation expense recorded on the Statement of Cash Flows?
Operating Activity
Does the choice of cost flow method affect the statement of cash flows?
no only the method of preparing the cash flow statement can not change the actual cash flow it is just the preference of preparation.
Why was there a need to require companies to prepare a statement of cash flows?
because otherwise there would be no cash
What is the difference between the direct method and indirect method?
The main difference between the direct method and the indirect method involves the cash flows from operating activities. Under the direct method, the cash flows from operating activities will include the amounts for lines such as cash from customers and cash paid to suppliers. In contrast, the indirect method will show net income followed by the adjustments needed to convert the total net income to the cash amount from operating activities.
What is Dividends received in cash flows statement?
Dividend received is the amount received by company from investing in other companies and shows in cash flows from investing activities.
What describes the investing activities as shown in the statement of cash flows?
The Statement of Cash Flows includes three different types of cash flows:Operating,Investing, andFinancingInvesting cash flows involve investments in other companies or investments in long-lived assets. They include:Purchases of long-lived assets;Proceeds from selling long-lived assets;Purchases of investments in other companies; andProceeds from selling investments in other companies.
