P23-7-Final - p237 a .Somepeopleor .Thedirectmethod's...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
p23-7 a Both methods can be used and are accepted in most cases.  Some people or  organizations might prefer the direct method more.  The direct method's advantage is that it shows in more detail where money is coming into  the company and what areas the money is coming out of the company. For the indirect method though it shows a link to the balance sheet and  income statement.  It shows how items like accounts receivable and accounts payable have either increase or decreased.  The decision on which method to use will depend on what it is being used for and the preference of that person. b Winston Company Statement of Cash Flows For the Year Ending May 31, 2008 Cash flows from operating activities Cash receipts from customers $1,233,250  Cash payments To suppliers $674,000  For Interest Expense 73,000  For Employees 276,850  For Other Expenses 10,150  For income taxes 43,000  1,077,000  Net cash provided by operating activities 156,250  Cash flows from investing activities
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern