Using the Direct Method to Prepare a Cash Flow Statement
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The Statement of Cash Flows. This statement is one of 3 financial statements, and it tells you how your cash is moving. It can be prepared using the Direct Method, or the Indirect Method The Indirect Method is easier to generate, and starts with your net income from the p&l, followed by your depreciation & amortization, and the net change in all balance sheet account. It is separate by cash from operating activities, cash from investing activities, and cash from financing activities. #financiall
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