1. What are 3 similarities you found between using the direct versus indirect method while constructing the 2 different statements of cash flows? You are NOT allowed to use specific numbers or say things like "they both used xyz account". Instead, point out the similarities between the way items are treated when constructing the statements, or the types of data used, etc.

2. What are 3 differences you found between using the direct and indirect method while constructing the 2 different statements of cash flows? Again, you are NOT allowed to use specific numbers or state they both used a specific account (like cash or inventories, etc.). Instead think in terms of the way you had to construct the first statement versus the second statement.

When explaining your similarities and differences, be sure to refer to the 2 statements as using the direct versus indirect method....do NOT refer to the similarities and differences as PR 16-1B and PR 16-5B! Responses are encouraged, but not required this week! This discussion is worth 80 points!