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Direct and
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Direct Vs. Indirect Cash Flow
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ElevatIQ
Mastering Cash Flow Forecasting: Direct vs Indirect Method
The three-statement model calculates cash flows using the indirect method. It examines the income statement and balance sheet, performs calculations between periods, and determines the ending cash balance. Building a cash flow forecast using the direct method can sometimes be easier to understand. With the direct method, you input cash flows ...
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