Indirect to Direct - Cashflow

unemployed1 · September 21, 2015, 5:05pm

Hello all,

Would anyone have any advice or tips to learning the indirect method of cashflow from operations and how to go from indirect to direct. Direct seems pretty straight forward however, I’m struggling with indirect. I would prefer to try and understand it rather then just memorize each line.

I know this is fairly broad but any help would be greatly appreciated!

Thanks!

S2000magician · September 21, 2015, 5:22pm

I wrote articles on each method that may be of some help here:

Direct method: http://financialexamhelp123.com/cfo-direct-method/
Indirect method: http://financialexamhelp123.com/cfo-indirect-method/

unemployed1 · September 21, 2015, 5:47pm

I will take a look, thanks for the quick reply!

S2000magician · September 21, 2015, 5:56pm

My pleasure.