ACCT 557 Week 6 Discussion Workout Room Application Chapter 23

ACCT 557 Intermediate Accounting III

(DeVry Keller - Winter 2016)

This week, we will cover the statement of cash flows and how to create this essential financial analysis tool. (See the Assignments area to get a jump on some of the problems we’ll be concentrating on in this thread.) Before we start doing problems together, what is the difference between the direct and indirect method? Why do companies prefer one over the other? Let’s start with Q 17 and BE 23-3 for practice and identify cash flow statement items.