1. Which method for preparing the Operating Activities section of the statement of cash flows, the direct or the indirect method, do you believe provides more information to users of the statement?...

1. Which method for preparing the Operating Activities section of the statement of cash flows, the direct or the indirect method, do you believe provides more information to users of the statement? Explain your answer.

2. Why is it necessary to analyze both inventory and accounts payable in trying to determine cash payments to suppliers when the direct method is used?