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Q1) Rowe Furniture: located in Elliston, Virginia, manufactures upholstered furniture. Company's 2004 statement of cash flows is presented below.  Most companies use indirect format for reporting cash flows;though, Rowe Furniture uses the direct format.

A. prepare down the similarities and differences in format of two cash flow statements?

B. Note reconciliation of net income to net cash given by operating activities which appears at bottom of direct format statement. What information does it give?  Does this reconciliation look familiar?

C. Which statement format do you think presents more understandable information? Describe why?

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