indirect -> direct cash flow conversion

[releasets]

For example, to convert, you would reduce cost of goods sold by any decreases in inventory.

Decreases in inventory represent a source of cash so these would be subtracted from cost of goods sold.

How do I wrap my head around the rest of this conversion?

[S2000magician]

Although I haven’t written specifically about converting from indirect CFO to direct CFO, I wrote an article on each method that may prove useful:

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