How do we know which accounts to include for cash paid to suppliers vs. other cash expenses when we are calculating cash flow adjustments from the income statement and the balance sheet?
I wrote a couple of articles on CFO that may be of some help here:
- Direct method: http://financialexamhelp123.com/cfo-direct-method/
- Indirect method: http://financialexamhelp123.com/cfo-indirect-method/
Maybe it is the way the question is worded, but it was asking for me to calculate cash paid to suppliers and other cash expenses (calculating them for direct method calculation of the CFO).
Not sure if there is an official difference, or is this just based on the question itself? I read your articles and I feel like it is based on the question, but what generally would constitute cash to suppliers vs. ordinary cash expenses?