The direct method helps us to record cash flows from operating activities. Cash flows arise from customers and cash payments to suppliers, employees and others. The direct method also reports cash outflows for income tax and interest paid. To prepare: The operating activity section of the company using direct method.

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Chapter 12, Problem 27QS

To determine

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The direct method helps us to record cash flows from operating activities. Cash flows arise from customers and cash payments to suppliers, employees and others. The direct method also reports cash outflows for income tax and interest paid.

To prepare:

The operating activity section of the company using direct method.

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