Module 6 : Cash Flow
Lecture 1 : Cash Flow Statement
 
Reporting of Cashflow from operating activities
  • It can be derived either from direct method or indirect method.
  • Direct method:
    • In this method, gross receipts and gross payments of cash are disclosed.

      Direct Method

      		 

      Cash receipts from customers

      		 XX

      Cash paid to suppliers

      		 XX

      Cash paid to employees

      		 XX

      Cash paid for other operating expenses

      		 XX

      Cash generated from operation

      		 XX

      Income tax paid

      		 XX

      Net cash from operating activities

      		XX