Cash flow statement

Harish (CS Executive) (386 Points)

07 June 2010  

Under direct method of  cash flow statement when we calculate Cash receipts from customers we add opening debtors and less closing debtors from the sales revenue.  But, when we calculate Cash paid to suppliers and employees we add closing inventory and add opeing inventory. I am confused where to add and deduct opeining and closing balances.  Please clear my doubt.