Preliminary expenses written off where in cash flow statement operating activities coloumn or financing activities coloumn please tell me
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Cash Flow Statement
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what is the difference between direct method and indirect method for cash flow statement please give two formats like one is here and another two is 1.investing activities 2.financing activities
| Cash Flow from Operating Activities (two formats) | |||
| Direct Method | Indirect Method | ||
| Cash received from customers | Net Income before Taxes and Extra Ordinary Items | ||
| Less:Cash paid to suppliers | Adjustments to reconcile net income to net cash provided | ||
| Less: Cash paid to employees | by operating activities: | ||
| -Depreciation | |||
| Other cash operating expenditures | -Loss or Profit from Sale of Assets | ||
| Changes in other accounts | |||
| Net cash provided by operating | affecting operations: | ||
| activities | Less:Increase in Current Assets | ||
| Add: Decrease in Current Assets | |||
| Less:Decrease in Current Liabilities | |||
| Add: Payment Of Income Tax | |||
| Add: Any other Extra ordinary Items | |||
| Net cash provided by operating | |||
| activities | |||
no format for investing and Financing activities
Prel exp written off being a non cash transaction is added to net profit in indirect method
agreed with Mr. siva ram
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