[Runklug]

Reading through a cash flow example comparing indirect to the direct method. I get the indirect method where a decrease in the liability is subtracted, since it isn’t a cash item (right? It wasn’t a payable, so I’m thinking that’s the reason). Where I went off the rails is that the direct method includes the change as part of interest paid. How does that work? Isn’t the direct method essentially like the cash basis of accounting? How is the same account treated as noncash on one method and cash on the other?