indirect methods

What Is The Difference Between Direct And Indirect Method?

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What Is The Difference Between Direct And Indirect Method? The direct method, the income statement is reformulated on a cash basis, rather than an accrual basis from the top of the statement (the income part) to the bottom (the expense part). The indirect method works from net income, so the bottom of the income statement,

How Do You Calculate Operating Cash Flow Using The Indirect Method?

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How Do You Calculate Operating Cash Flow Using The Indirect Method? With the indirect method, cash flow is calculated by taking the value of the net income (i.e. net profit) at the end of the reporting period. You then adjust this net income value based on figures within the balance sheet and strip-out the effect