Refer to Polaris statement of cash flows in Appendix A (a) Which method is used to compute its net cash provided by operating activities (b) Its balance sheet shows an increase in accounts (trade) receivables from 2010 to 2011 why is this increase in accounts (trade) receivables subtracted when com...

a Indirect method b The increase in accounts trade receivable represents an ...

Refer to Polaris statement of cash flows in Appendix A. (a) Which method is used to compute

Question:

Refer to Polaris’ statement of cash flows in Appendix A.
(a) Which method is used to compute its net cash provided by operating activities?
(b) Its shows an increase in accounts (trade) receivables from 2010 to 2011; why is this increase in accounts (trade) receivables subtracted when computing net cash provided by operating activities for the year ended December 31, 2011?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...