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1. Does the company use the direct or the indirect method to prepare the statement of cash flows? How can you tell? Which activity section is affected by this choice of method?
2. For the most recent year, list the amount of net cash inflow or outflow from each of the three major types of activities reported on the statement of cash flows. Which type of activity is providing the most cash? Is this considered favorable or unfavorable?
3. For the most recent year, what amount is reported for net income and net cash from operat- ing activities? Are these amounts the same? Explain why or why not.
4. For the most recent year, did the company report cash inflows or outflows for capital expendi- tures? Is this considered favorable or unfavorable? Explain why. What do you think these capital expenditures are primarily for? What was the net amount of the capital expenditure? Which activity section reports this information?
5. For the most recent year, what amount of cash dividends did the company pay out? For the most recent year did the company issue or retire any common stock? What was the net amount issued or retired? For the most recent year did the company issue or retire any long-term debt? What was the net amount issued or retired? Which activity section reports this information?
Classify the above items into the categories direct materials, direct labor, and manufacturing overhead
Which is the following that is not true about closing entries?
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