I have read through all the reading and I am still struggling to answer these questions. ATTACHMENT PREVIEW Download attachment Preparing a statement of cash flows helps up determine where the cash inflows and outflows are occurring in the company.docx 1. Preparing a statement of cash flows helps up determine where the cash inflows and outflows are occurring in the company. While we want positive cash flow, are there times when positive cash flow can be misleading? What about negative cash flow being good? 2. There are two types of statements that can be prepared, the indirect and the direct methods. IFRS and US GAAP are discussing which method to use and both prefer the direct cash flow statement. What are the advantages of using the direct method? Why do you think industry is favoring using the indirect method instead? 3. Should I be concerned if I have positive cash flow from investing? When is it good? When is it bad, and why? 4. Discuss this week’s objectives and the previous concepts comparing the GAAP to the IFRS. How do they relate to the practice of accounting and its uses in business? 5. Define the types of ratios and what they could be used for when assessing a company’s performance. What does preparing a vertical and horizontal analysis do for the company