Comparison of direct and indirect format of income statement

Assignment Help Financial Accounting

Reference no: EM1312760

Comparison of direct and indirect format of income statement.

Rowe Furniture: located in Elliston, Virginia, produces upholstered furniture. The company's 2004 statement of cash flows is presented below. Most companies use the indirect format for reporting cash flows; however, Rowe Furniture uses the direct format.

A. What are the similarities and differences in format of the two cash flow statements?

B. Note the reconciliation of net income to net cash provided by operating activities that appears at the bottom of the direct format statement. What information does it provide? Does this reconciliation look familiar?

C.Which statement format do you believe presents more understandable information?Why?

Reference no: EM1312760

Questions Cloud

Solution for basic health insurance : What is a fixed payment made by the privately insured patient in exchange for receiving the medical good or service? What is the percentage of each and every medical bill that the patient pays rather than the flat dollar amount?

Multiple comparison test-lsd and bonferroni test : Determine the pairs which are significant according to LSD and what pairs are important according to Bonferroni?

Explaining and comparing mutually exclusive projects : Explaining and Comparing Mutually Exclusive projects and Eads Industrial System Company is trying to decide between two different conveyor belt systems

Health expenditure on insurance : Jermaine has a health insurance policy that has a deductible of $1,000, a $10 copayment on doctor visits, and coinsurance of 10% on all expenses other than those for which there are copayments.

Comparison of direct and indirect format of income statement : What are the similarities and differences in format of the two cash flow statements and Comparison of direct and indirect format of income statement

Computation of deadweight loss in health insurance : Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services

Computing the average real return for treasury bills : Computing the average real return for treasury bills and Calculate the average real return for Treasury bills over this period

Multiple comparison test-lsd : With this important detail, are there any significant differences with LSD?

Problems which increase insured people : Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies must offer insurance to everyone at unregulated rates.

User Account

All Pages