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    Timothyes70's Avatar
    Timothyes70 Posts: 1, Reputation: 1
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    #1

    May 27, 2009, 05:19 AM
    Indirect method of cash flow preparation
    I need the format for cash flow preparatin - indirect method
    harrison boahen's Avatar
    harrison boahen Posts: 1, Reputation: 1
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    #2

    May 27, 2009, 11:45 AM
    I need thee example of variable direct cost
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    May 28, 2009, 05:59 PM

    Timothy, format can be a matter of opinion. If this is for class, your instructor's opinion is the one that counts. The only important points is that you have three separate sections: operating, investing and financing, followed by a "non-cash items" section if needed. The operating section is the only one that has direct and indirect methods. (The other two sections are always direct.) For indirect, it starts with net income, you list a series of adjustments, and end with net cash flows from operating activities. There are no rules on exactly how you need to organize those adjustments - different people do it differently. The important part is getting the numbers right, not how it's organized.

    But here is an example of an indirect one:
    http://www.principlesofaccounting.com/chapter%2016.htm
    Go clear to the bottom of the page, and then scroll up to about the 3rd item from the bottom, all blue.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    May 28, 2009, 06:01 PM
    Harrison, unless you're answering someone else on the thread, please start your own. Yours has nothing to do with the OP's. I'm assuming that's for homework and we don't do people's homework for them. You need to make an attempt first to answer the question and someone can let you know if you're on the right track.

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