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    zolala's Avatar
    zolala Posts: 1, Reputation: 1
    New Member
     
    #1

    May 17, 2014, 06:05 AM
    How to calculate cash paid to suppliers and employees
    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's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    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

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