Indirect vs Direct Methods

CFA Level I FRA
#1

Hi all,

Here is the question from the candidate resource base (Cfa Institute 2018):

Which of the following is the most likely reason for an analyst to choose the direct method rather than the indirect method for analyzing a firm’s operating cash flows?

  1. To understand the relationship between net income and operating cash flows
  2. To identify operating cash flows by source and by use
  3. To avoid making adjustments for non-cash items

Why “3” is not the right option? because we make adjustments for non-cash items only with an indirect method. I got really confused on that question

#2

The question asks for the most likely reason.

Do you think that 3 is more likely than 2?