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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1932 |
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Is the format in conformity with GAAP?
P & G presents the statement of cash flows using the indirect format. The indirect method considers each change in non cash operating account in the balance sheet and thus explains cash flow from operating activity. Yes but the GAAP encourage use of the direct method...
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(Page 54, Page 352-354 textbook)
Question 9
Give an overall assessment of how this company managed its cash flows for the most recent year.
P & G saw an 18 percent increase in its operating cash flows due to higher net earnings. This increase was slightly offset by cash used to fund working capital due to business growth and thus increases in inventory and higher accounts payable...
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