Question: Cash flow statement: Direct method sheet: You are required to prepare a template of how a complete cash flow statement will look based on the

  • Cash flow statement: Direct method sheet:

You are required to prepare a template of how a complete cash flow statement will look based on the direct method.

List at least 2 advantages and 2 disadvantages of using the direct method when it comes to cash flow statements.

  • Cash flow statement: Indirect method sheet:

You are required to prepare a template of how a complete cash flow statement will look based on the indirect method.

List at least 2 advantages and 2 disadvantages of using the indirect method when it comes to cash flow statements.

  • Cash flow statement: Conclusion Direct vs Indirect

You are required to summarise what the differences are between the direct method vs the indirect method.

Clearly state your conclusion: Is there a difference in the amounts calculated between the two methods?

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