Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 58

Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Direct Method)
Refer to the information for New Vision Company in E12-9.
Required:
1. Present the operating activities section of the statement of cash flows for New Vision Company using the direct method. Assume that Other Accrued Liabilities relate to Other Expenses on the income statement.
2. Of the potential causes of differences between cash flow from operations and net income, which are the most important to financial analysts