Page 20 - Business Proposal

CASH FLOW METHODE

a. DIRECT CASH FLOW

In the direct method, the preparation is done
based on the cash book/bank.
To use this method, you must report groups
of cash receipts and disbursements from the

company's operations. Then proceed with
investment and financing activities.

b. INDIRECT CASH FLOW
In the indirect method, the preparation is

based on the income statement and balance
sheet.
With this method, the profit / loss must be

adjusted by correcting the effect of non-cash
transactions, deferrals or accruals from cash
receipts or payments for past and future
operational activities, and elements of

income or expenses related to investment
cash flows or receipts.