The following steps listed below show you how to prepare a cash flow statement using the indirect method. If you are preparing a cash flow statement using the indirect method, you can follow these steps. A cash flow statement using the indirect method differs from the direct method of preparing a cash flow statement. While favored by financial guides, the direct method can be difficult and time-consuming; the itemization of cash disbursements and receipts is a labor-intensive process. To add to the complexity, the Financial Accounting Standards Board (FASB) requires…
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