accounting questions

please see attached.

In your own words please explain. NO word minimum. Please cite all sources using APA format.

1)

A statement of cash flows prepared on the direct method is prepared by converting every number on the income statement to its cash amount.  How is a cash flow statement prepared using the indirect method?

Which would be more useful to use if you had a choice between the annual report or the statement of cash flows?

2)

Warning signs relating to cash flow issues would include not being able to pay payroll on time, continually using borrowed funds to operate, and not replacing fixed assets when sold or disposed of.  What are other examples?