(d) Under either the direct method or indirect method,
the major classes of gross cash receipts and gross cash payments
must be reported in the statement of cash flows. Under the direct
method, the amount of income taxes paid is one of the components
of net cash flows from operating activities; under the indirect
method, it is a required supplemental disclosure. A reconciliation
of net income to net cash flow from operations is a required
supplemental disclosure under the direct method, and is
included in the body of the statement under the indirect method.
Only a reconciliation of ending retained earnings to net cash flow
from operations is not required under either method.