The Statement of Cash Flows can be prepared using two different methods. When the Operating Activities section of the Statement is prepared using both the Indirect and the Direct Method, the end result (Net Cash Flows amount) is exactly the same (assuming it has been done correctly). The Direct Method is basically Cash Received - Cash Paid for operating activities. The Indirect Method starts with Net Income and makes a series of adjustments. What is the Indirect Method way of getting to net cash flows (not the steps or the mechanics of it but the underlying principle)? Why increase or decrease Net Income with each activity? Why does it start with Net Income or why does Net Income need to be "adjusted"? Feel free to think critically and share any thoughts or concerns about this issue. Do not forget to reply to another student's post and analyze their comments