Cash flow is calculated using the direct (drawing on income statement data using cash receipts and disbursements from operating activities) or the indirect method (starts with net income ...

For example ... Direct cash flow involves simply adding all of a business's cash transactions in the operating activities section of the cash flow statement. The indirect cash flow method starts ...

The general steps are as follows: As mentioned previously there are two ways to build a cash flow statement: the direct method and the indirect method. Both methods yield the same net cash flow ...

For example ... a cash outflow, so this needs to be addressed within the cash flow statement. Either way, the operating cash flow should be the same between the direct and indirect method ...