Cash Flow Statement | Direct Method | Sabaq.pk

The Cash Flow Statement using the direct method helps in understanding a company's cash history, including inflows and outflows of cash. This financial statement is crucial for planning an effective budget and complies with the International Accounting Standard (IAS) requirements. In this video, we will explore the cash flow from operating activities, where daily business transactions are recorded, as well as the cash flow from investing activities, which tracks purchases and sales of assets. Finally, we will discuss the cash flow from financing activities, focusing on how companies raise and repay funds. This lesson provides a clear and structured explanation of the direct method in cash flow statements, helping you understand its significance in financial analysis.

00:00 Cash Flow Statement
02:10 Methods to make cash flow statement
03:00 Direct Method
05:10 Examples

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