Question: Chapter 16 options: 1. Is it possible for a company to have significant net income in the same time period that net cash flows are

Chapter 16 options: 1. Is it possible for a company to

Chapter 16 options: 1. Is it possible for a company to have significant net income in the same time period that net cash flows are negative? Explain. 2. Explain the difference between the two methods used to prepare the operating section of the statement of cash flows. How do the results of these two approaches compare? 3. Why is depreciation an addition in the operating section of the statement of cash flows, when prepared by the indirect method? 4. When preparing the operating section of the statement of cash flows, using the indirect method, how must gains and losses be handled? Why? 5. Why is using the direct method to prepare the operating section of the statement of cash flows more challenging for accountants than preparing the balance sheet, income statement, and retained earnings statement

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