Statement of Cash Flows

Free CPA FAR (Financial Accounting & Reporting) lesson in Financial Reporting. 22 min read, ~3,337 words.

ASC 230 requires three sections: Operating, Investing, Financing; every cash receipt or payment lands in exactly one. Indirect method starts with net income, adds back non-cash expenses, removes investing gains/losses, adjusts for working capital. Working capital rule: current asset up = subtract; current liability up = add. Opposite directions, always...