The direct method only takes the cash transactions into account and produces the cash flow from operations. The cash flow indirect method makes sure to automatically convert the net income in terms of cash flow.
A major advantage of the indirect method of cash flows is that the method provides a reconciliation between net income and cash flows. The indirect method also helps financial-statement users better understand different linkages among financial statements and is a simple way of preparing the statement of cash flows.
Which is better the direct or indirect method of cash flows statement?
Direct cash flow statement is broadly accurate as it does not rely on adjustments and hence it takes less to time prepare cash flows statements. The indirect cash flow method cannot be regarded as accurate as it accounts for adjustments and it generally requires more time in preparation.
How do you tell if a company uses direct or indirect method?
While both are ways of calculating your net cash flow from operating activities, the main distinction is the starting point and types of calculations each uses. The indirect method begins with your net income. Alternatively, the direct method begins with the cash amounts received and paid out by your business.
Learn more about cash flow statement:
brainly.com/question/24179665
#SPJ4
Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.
<h3>What is a
Strategic competitiveness?</h3>
Strategic competitiveness can be described as one that a firm uses which help to successfully integrates a value-creating strategy.
It should be noted that to have a complete value-creating strategy one need to adopt a holistic approach that includes business strategy, hence Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.
Learn more about competition at:
brainly.com/question/9698922
#SPJ1
Answer:
a. Other Comprehensive income for 2020 = Unrealized holding loss = -$10.9 million
b. Comprehensive income for 2020 = Net income - Unrealized holding loss = $1,245.7 million -$10.9 million = $1,234.8 million
c. Accumulated other comprehensive income at December 31, 2020 = Accumulated other comprehensive income - Other Comprehensive income for 2020 = $57.2 million - $10.9 million = $46.3 million
<span>The company is using market-penetration pricing.</span>
Answer:
breach of the covenant of good faith and fair dealing
