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 ...

There are two methods for preparing cash flow statements: direct and indirect. Analyzing cash flow statements helps identify financial trends and potential problems. Investopedia / Matthew Collins ...

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 with the business ...

Both of these come with their own unique costs and benefits ... the cash flow statement. Either way, the operating cash flow should be the same between the direct and indirect method, because ...