(scf—direct and indirect methods from comparative financial statements)

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instructions

(a) compare and contrast the direct method and the indirect method for reporting cash flows from operating activities.

(b) prepare a statement of cash flows for chapman company for the year ended may 31, 2010, using the direct method. be sure to support the statement with appropriate calculations. (a reconciliation of net income to net cash provided is not required.)

(c) using the indirect method, calculate only the net cash flow from operating activities for chapman company for the year ended may 31, 2010.
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