Direct vs Indirect CFO

How many of you recall seeing the Direct method of calculating Cash Flows on the test. I am very proficient at the indirect method, and I very rarely see the direct method pop up in practice questions. Given that the direct method involves a fair amount of effort and memorization, and my mind only has so much room left for storing formulas, I would be tempted to just skip this and consider it a loss presuming the likeliehood of being asked one of these is relatively low and or insignificant.

Direct cash flow method is one that you can learn without memorizing if you learn the concept.

forget that, change your ID stat.