4. Statement of Cash Flows
[Pages:66]4. Statement of Cash Flows
4.1 Indirect Method
4.2 Cash Flow Analysis
4.3 Operating, Financing, and Investing Activities
4.4 Summary
4.1 Indirect Method
? The Indirect Method is the usual method of computing cash flow from business operations
? The Indirect Method starts with net income
? Indirect Method then uses the changes in the asset and liability accounts to adjust net income
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