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    cash flow statement indirect method

    In the indirect method, the net income is adjusted for changes in the balance sheet accounts to calculate the cash from operating activities. A statement of cash flows can be prepared by either using a direct method or an indirect method. The indirect method is one of two methods for preparing the cash flow statement. The statement of cash flows is one of the components of a company's set of financial statements, and is used to reveal the sources and uses of cash by a business. adjusts net income for the changes in balance sheet accounts to calculate the cash from operating activities The indirect method for the preparation of the statement of cash flows involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

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