💥Indirect Method Cash Flow Statement Cheat Sheet → accountingstuf...
🖊Cash Flow Statement Practice Questions → accountingstuf...
Learn how to produce a Cash Flow Statement using the Indirect Method. This episode of Accounting Basics for Beginners is Part 3 covering Indirect Method Cash Flow Accounting. The rest of the series can be found here:
▪ Cash Flow Statement Direct Method (Part 1) → • Intro to Cash Flow Sta...
▪ Cash Flow Statement Direct Method (Part 2) → • Prepare A Cash Flow St...
Preparing a Cash Flow Statement using the Direct Method can be time consuming. In this episode of Accounting Stuff, I'll show you the faster way.... using the Indirect Method.
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⏱️TIMESTAMPS
00:00 - Intro
01:07 - Comparing the Direct and Indirect Method
02:11 - How to Prepare a Cash Flow Statement using the Indirect Method
02:21 - Step 1: Calculating Net Profit or Loss
05:46 - Step 2: Add Back Non-Cash Expenses
06:18 - Step 3: Adjust for Movement in Working Capital
09:19 - Is the Indirect Method Better than the Direct Method?
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