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 ...

A cash flow statement consists of three sections: operating, investing and financing. Companies report investing and financing activities directly on a cash basis, but often use the indirect ...

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 ...

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 ...