I get confused with all of the information in the Statement of Cash Flows.  I mean get:

- the components (Operating, Investing, and Financing Activities),

- that we're trying to detail the change in cash (from beginning balance to ending balance),

- that the direct method analyzes each account to see whether its change represents an inflow/outflow of cash, and

- that the indirect method attempts to reconcile the change in the balance of cash to net income.

Where I go BANANA-SANDWICH-crazy is when I'm trying to identify what is an operating item, how it rolls up into cash flows, why it's not an investing or financing activity, i.e. if the problem refers to a redemption of bonds do they mean if I redeem or if a client redeems with me (See Wiley Simulation #1).  WTF? there has to be a systematic way to tackle these problems so I can nail each question in under a minute and half.  I can stomach having to work through a simulation with more effort but the Wiley questions seem to throw out multi-part questions pretty regularly, i.e. "Questions 33-36" are based on the following information...Net Cash provided by Operating Activities is..."  Try figuring that one out in 1.5 minutes...there has to be an efficient way to go through these. 

I'm using Roger CPA review with the Wiley study materials.  I found his explanation to be confusing.  I got a 64% on the Wiley MCQ's on my first pass through.  What's your technique for working through the statement of cash flows?

Thanks.  If you come across your notes I'd love to see them. 

I think I'm getting these finally and now I understand my CPA review material (Roger's) better.  For me, I had to work through all the simulations I can get my hands on.  Even though I may not get them 100% correct each time I still get the process better.  Understanding how to work the simulations enhances my understanding of the MCQ's.  If you can work through the simulations the MCQ's aren't that bad.  Common sense and I'm sure many people will say "Duh!" but hopefully this helps someone else in my predicament.