Professional Documents
Culture Documents
CH 23
CH 23
inflows
Cash Pool
outflows
The indirect method derives cash flows from accrual basis statements. The direct method determines cash flows directly for each source or use of cash.
$ XXX $ XX
$ XXX $ XX $ XXX $ XX $ XXX
Cash flows from investing activities: (List of individual inflows and outflows) Net cash flow from investing activities
Cash flows from financing activities: (List of individual inflows and outflows) Net cash flow from financing activities
$ XX $ XXX
$ XX $ XXX
For taxes
Worksheet
A work sheet may be useful when a number of adjustments are needed. Involves three steps:
1. Enter beginning and ending balance sheet data. 2. Enter the data that explains the changes in balance sheet accounts (other than cash). 3. Enter the increase or decrease in cash on cash line and at the bottom of the work sheet. This entry results in the totals of the reconciling items to agree.
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