Indirect method vs. direct method and horizontal vs. vertical

Week 6 Discussions and Required Resources

Part 1 and Part 2 must be at least 200 words

     

Part 1: Indirect Method vs. Direct Method

Financial statement preparers have two choices in preparing the statement of cash flows: the indirect method and the direct method. The indirect method is used extensively in practice even though the F.A.S.B. has expressed a preference for the direct method. Discuss the similarities and differences between the direct and indirect methods, and the advantages of using each method. 

Your answer should illustrate understanding of the cash flow statement. A minimum of 100 to 200 words is required for your answer. 

Part 2: Horizontal vs. Vertical Analysis  

Discuss the horizontal and   vertical analysis of a financial statement, and how each is used to help   financial statement users make better decisions.  Also, explain the   liquidity, solvency, and profitability ratios introduced throughout the text.   Describe how the ratios are used in analyzing a firm’s liquidity, solvency,   and profitability. Your answer should illustrate understanding of financial   statement analysis, including ratios.  A minimum of 100 to 200 words is   required for your answer. 

Required Resource

Text

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2016). Financial accounting: Tools for business decision making (8th ed.). Retrieved from https://content.ashford.edu/

· Chapter 12: Statement of Cash Flows

· Chapter 13: Financial Analysis: The Big Picture

(Chapters 12-13 are in the attachments) 

Recommended Resource

Website

http://bcs.wiley.com/he-bcs/Books?action=index&itemId=1118953908&bcsId=9831 

(Chapters 12-13 PowerPoints are in the attachments)







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10