Practice
Check your answer
Write your response and explain your reasoning.
The direct schedule reports $142 million and the draft indirect schedule $139 million. Use the supplied account rollforwards and event flags to identify and correct scope, noncash, acquisition, currency, and sign errors. Explain why agreement is necessary but does not prove population or classification.
Compare your reasoning with the worked answer
Remove the acquired receivable from the working-capital adjustment and correct the duplicated noncash add-back. The resulting indirect amount must equal the supplied direct subtotal; any residual remains an exception.