Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 58

Cash flows from operating activities-direct method
The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows:

Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:

a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method.
b. What does the direct method show about a company's cash flows from operating activities that is not shown using the indirect method