The end result is the same net cash flow produced by the direct method. ... “Examining Preferences in Cash Flow Statement Format.” The CPA Journal. October 2004. Hey-Cunningham, David.

The Advantages of Preparing a Cash Flow Statement Using the Direct Method. The statement of cash flows is one of the financial statements investors rely on to gauge a company's financial strength.

Cash Flow From Operating Activities (CFO) indicates the amount of cash a company generates from its ongoing, regular business activities.

The format for your cash flow statement should contain four parts: cash for operating activities, cash for investing, cash for financing and supplemental information. Under each of those headings ...