1.Differentiate between the direct method and the indirect method by discussing each method,highlighting the differences and explain which one FASB recommend and why.

2.Your roommate is puzzled.During the last year, the company in which she is a stockholder reported a net loss of $675,000, yet its cash increased $321,00 during the same period of time.Explain to your roommate how this situation can occur.

3.Wainwright Corporation had the following activities in 2014;

Sale of land$180,000, Purchase of Inventory $845,000,Purchase of Treasury stock $72,000,Purchase of Equipment$415,000,Issuance of common stock $320,000, and Purchase of Available for sale securities $59,000

Compute the amount Wainwright should report as net cash provided (used) by investing activities in its 2014 statement of cash flows.