1. In the video in the Learning Activity “Understanding the Statement of Cash Flows” Tony Bell mentions an easy way to determine whether the indirect or direct method is used in developing the Statement of Cash Flows. What does he say this is? Conduct your own research and list two companies that use either the indirect method or the direct method. Provide a link to each company’s Statement of Cash Flows, and list two advantages for the method that you prefer. Video: https://www.youtube.com/watch?v=B3iO5pUZOzU&feature=emb_logo 2. In the Learning Activity “Critical Areas of Financial Analysis” you learned how the opinions of other analysts are a way for managers to make decisions. Examine Table 1.3 (Bond Ratings) carefully and understand the different classifications of bonds by the different analysts. Then, conduct research and find an organization that offers a bond with a “Very High Quality” rating and one that offers bond with a “Very Poor” rating as stated in the table. Provide the link to the financials and examine them. List at least three financial factors for each organization that you feel are the reasons for the analyst ratings. Do you agree with the analyst ratings? Why or not? Would you personally invest in the organization by buying the bonds? Why or why not?
