There are two methods for preparing cash flow statements: direct and indirect. Analyzing cash flow statements helps identify financial trends and potential problems. The cash flow statement is a ...

There are two methods of calculating the cash flow of a business -- the direct and indirect methods. Direct cash flow involves simply adding all of a business's cash transactions in the operating ...

Either way, the operating cash flow should be the same between the direct and indirect method, because the goal is always to show money leaving or entering a business over a given period.

When reviewing line items, corporations can take a direct or indirect approach to calculating cash flow. For the direct approach, corporations determine cash flow by adding up the total cash ...