Preparing the Statement of Cash Flows - A Basic Indirect Method Example - Accounting Step-by-Step

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In this video, we take a step-by-step approach to prepare a very basic Statement of Cash Flows using the Indirect Method.
We begin with source data for the statement which is taken from a simple income statement, partial comparative balance sheets and other information necessary to complete the statement. This data is all presented on a single page and it’s clear enough to take a screen shot which can be printed so you can follow along as the statement comes together.
The statement is prepared step-by-step on a whiteboard with adequate explanations and done at a pace that permits the viewer to follow along and take notes.
In order to better understand the video, it helps if the viewer is familiar with the operating, investing, and financing activities sections of the statement of cash flows. An introduction to the statement and its various sections is covered in another video.
Preparation of the statement of cash flows can be a challenge so this video covers the very basics in an understandable fashion. A more complicated statement and the direct method are covered in other videos.
If you’re familiar with the sections of the statement of cash flows and are just now learning to prepare the statement, this video is for you!