Cash flow statement direct method

Line ItemDerivationCash flows from operating activities
 Net income
From the net income line on the income statementAdjustments for:
   Depreciation and amortization
From the corresponding line items in the income statement
  Provision for losses on accounts receivable
From the change in the allowance for doubtful accounts in the period
  Gain/loss on sale of facility
From the gain/loss accounts in the income statement  Increase/decrease in trade receivables
Change in trade receivables during the period, from the balance sheet  Increase/decrease in inventories
Change in inventories during the period, from the balance sheet  Increase/decrease in trade payables
Change in trade payables during the period, from the balance sheetCash generated from operations
Summary of the preceding items in this section  Cash flows from investing activities
 Purchase of fixed assets
Itemized in the fixed asset accounts du

cash flow обзор