The direct method is one way for a company to prepare its cash flow statement for presentation to shareholders. Both U.S. generally accepted accounting principles (GAAP) and International ...

Direct Vs. Indirect Cash Flow Method. A company reports revenues and expenses on its income statement. Since most companies use accrual accounting, the income statement reveals little about cash ...

How to use a cash flow statement In the short term, insufficient cash flow can prevent a business from paying its bills. In the long run, it can stop your business from achieving profitable growth.

Free cash flow (FCF) is the amount of money a company has that exceeds the amount needed to sustain and grow the business.