The statement of cash flows

  1. Some might argue that the statement of cash flows is an optional financial statement and does not provide critical information needed for a firm or investor to succeed.  Do you agree with this statement? Why or why not?
  2. There are two methods for constructing the statement of cash flows: the direct method and the indirect method.  What are the similarities and differences between the two methods?  Which of the two is most preferred?  Which is required by FASB?

150-300 words for each question