Direct cash flow involves simply adding all of a businesses' cash transactions in the operating activities section of the cash flow statement. The indirect cash flow method starts with the ...

Cash flow statements ... For the direct approach, corporations determine cash flow by adding up the total cash payments and receipts. For the indirect method, corporations deduct non-operating ...

The profit or loss on the income statement is then used to calculate cash flow from operations. This is referred to as the indirect method. Another technique, called the direct method, can also be ...