You can choose between the direct and indirect methods to report operational cash flow. The statement of cash flows contains sections for three sets of activities: operating, investing and ...

There are two methods for depicting cash from operating activities on a cash flow statement: the indirect method and the direct method. The indirect method begins with net income from the income ...

A company has two choices for how it prepares its cash flow statement: the direct method and indirect method. Of the two methods, the direct method is the easiest to comprehend because it is ...