Tag Archives: Indirect method

How to prepare Cash Flow Statement using Indirect Method

Indirect cash flow statement is divided into three areas: Operating activities: Cash inflow/outflow from business activities such as sales, royalties, commissions, fines, lawsuits, supplier and lender invoices, and payroll. Investing activities: Cash inflow/outflow from sale/purchase of long term assets (CAPEX/Capital … Continue reading

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Difference between: Direct AND Indirect methods of Cash Flow Statement

A ‘cash flow statement’, also known as ‘statement of cash flow’, is a part of financial statements that shows how changes in Balance Sheet accounts and Income statement (P&L a/c) affect cash and cash equivalents. A Cash flow statement is … Continue reading

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