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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 ...
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 ...
At times, one statement may answer a question the other poses. For example ... the operating cash flow should be the same between the direct and indirect method, because the goal is always ...
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