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View Full Version : How to calculate cash paid to suppliers and employees


zolala
May 17, 2014, 06:05 AM
I am given the balance sheet and additional information. I need to prepare a Cashflow using the direct method.

I get confused when it comes to all the other items that fall under Cash paid to suppliers and employees as I know Admin and other expenses, loss/gain on sale of equipment etc have to either be subtracted or added.
Please help me in understanding the correct logic

paraclete
May 19, 2014, 04:51 PM
so if you don't know which items are non cash you have a problem of having to hit the books before you tackle this problem. the logic is you put down your computer and open the book at page 1