CFO direct vs. indirect

I am having some trouble breaking these two formulas down into something smaller and easier to apply/memorize, does anyone have any tips?? Thank you

what about changes to working capital components?

good stuff, anyone else have methods beyond njblain? that looks like a good one to memorize…thank you

you could build a sentence from it. S - C - D - O + G - I - T Some cowboy dudes offer good interesting turtles or so… now you have to remember the signs.

i dont know what’s there to really remember and above makes it very confusing. Direct-account for all cash operating activity. Indirect start with NI add non cash and then account of changes in balancesheet accouts used in operating activities. and dont forget and CFO is the same under both methods so pick the easier one (indirect for me) on the exam even if aksed to used the other (direct) one.

I can’t get my head around Direct/Indirect methods if anyone can share a few more methods of how they gained a better understanding please share.

johnn33fb Wrote: ------------------------------------------------------- > I can’t get my head around Direct/Indirect methods > if anyone can share a few more methods of how they > gained a better understanding please share. Can someone post a walkthrough on the indirect method of calculating CFO? Another embarrassing question.

Digger check out: http://www.investopedia.com/study-guide/cfa-exam/level-1/financial-statements/cfa18.asp http://en.wikipedia.org/wiki/Cash_flow_statement