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2017. 5. 17. – Under the indirect method of presenting the statement of cash flows, the presentation of this statement begins with net income or loss, with subsequent additions to or deductions from that amount for non-cash revenue and expense items, resulting in net income provided by operating activities. The statement of cash flows prepared using the indirect method adjusts net income for the changes in balance sheet accounts to calculate the cash from operating activities. . The direct method lists all receipts and payments of cash from individual sources to compute operating cash flows. The indirect method adjusts net income (rather than adjusting individual items in the income statement). The most common example of an operating expense that does not affect cash is depreciation expense. Depreciation expense must be added back to net income. the following example. Star Therapeutics, Inc. . The “???”-Minute Cash Flow (indirect method): The two methods differ only in the manner in which cash flows. An overview of cash flows from investing and financing. . CFI example – asset disposal . b) Determine the cash from operations by the indirect method. Here we will study the indirect method to calculate cash flows from operating . The following example shows the format of the cash flows from operating . Indirect method of cash flow statement. Definition, explanation, format and advantages of indirect mehtod of cash flow statement. The discussion on the indirect method of preparing the statement of cash flows refers to the line items in the following statement and the information previousl.