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Assess the comments which follow as being true or false. If the comment is false, in brief describe why.

a) Both the direct and indirect methods will generate the similar cash flow from operating activities.

b) Depreciation expenditure is added back to total income when the indirect method is used.

c) One of the benefits of using the direct method instead of the indirect method is that larger cash flows from financing actions will be reported.

d) The cash paid to suppliers is generally disclosed on the statement of cash flows when the indirect method of statement preparation is used.

e) The dollar change in the Merchandise Inventory account appears on the statement of cash flows just when the direct method of statement preparation is employed.

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