[CanYouCurveA74]

I’m having a hard time understanding cash flows. Does anyone have any resources to make cash flows easier to understand? :/

[Ana]

Resources are mcq, sims, and the book. Have you utilized those? More trouble with indirect or direct method?

[jgod]

Ninja Plus videos. That dude explains it really well.

AUD- 99 (6/8/16)
REG- TBD
FAR- TBD
BEC- TBD

[Accounting Adam]

The best way is to master each portion of the cash flow. What goes into operating, investing, and financing. After MASTERING that, you should be able to handle both indirect and direct. I wouldn't try to generalize what goes in each either – be specific! In Investing, ‘buying/selling fixed assets and buying stock' rather than ‘PP&E and long tern investments'.

I just took FAR last week.. Know your cash flows!

[Anonymous]

Got 2 Sims on governmental CF statements.. don't skip those!

[Thao]

There’s so much to the Statement of Cash Flows. What exactly do you want to know?
Statement of Cash Flows show where did you use your money and where did you get your money from. You can choose to use either the direct or indirect method for the Operating activities. Direct method is just adding/subtracting the cash basis payment and source to arrive at the net payment/cash provided. Indirect method: basically you start with Net Income (accrual basis) and convert it to cash basis.

That’s just the concepts. Try to do some sims and let us know if you have any question. That’s the best way to learn.

[Author]

Replies