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Unformatted text preview: transactions. 5-14 Yes. It is important to know of the periodic need to pay off and refinance debt. Companies with large short-term debt levels often find it an inexpensive way to borrow, but when interest rates rise or a company's financial condition worsens, refinancing may be both difficult and expensive. 5-15 The direct method and the indirect method are the two major ways of computing net cash flow from operating activities. 5-16 The information for the direct-method cash flow statement comes directly from entries into a companys cash account. 5-17 The required adjustments are to add noncash expenses and losses, deduct noncash revenues and gains, add decreases in operating assets and increases in operating liabilities, and deduct increases in operating assets and decreases in operating liabilities....
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This note was uploaded on 04/11/2008 for the course ACCT 151 taught by Professor Largay during the Spring '07 term at Lehigh University .
- Spring '07
- Financial Accounting