Prepare A Cash Flow Statement | Direct Method

Learn how to produce a Cash Flow Statement using the Direct Method with T Accounts. The episode of Accounting Basics for Beginners is part two of Direct Method Cash Flow Accounting. The first part can be found here:

In this video, we use T Accounts to reproduce the Cannon's Statement of Cash Flows for all three sections:

▪ Cash Flow from Operating Activities
▪ Cash Flow from Investing Activities
▪ Cash Flow from Financing Activities

If you are struggling with the Cash Flow Statement then watching this video is a fantastic way to practice the Direct Method. You will be led through all of the stages step-by-step to ensure that you are left with a clear picture of the whole process.

👂LISTEN TO HARRY POTTER

🖊STUFF I USED IN THIS VIDEO

⏱️TIMESTAMPS
00:00 - Intro
01:09 - How to Prepare a Cash Flow Statement using the Direct Method
01:23 - Cash Flow from Operating Activities
13:09 - Cash Flow from Investing Activities
16:04 - Cash Flow from Financing Activities

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[AccountingStuff]

This one is a beast! But I didn't want to skip any steps in calculating Cash Flow with the Direct Method because there's a lot going on in there. How did you guys find this style of learning? I like to try out new things to see what people find most effective.

Big thanks to everyone who has supported the channel by subscribing! As I type this the channel is sitting at 999, so hopefully we will have 1, 000 by lunch. Always appreciate your comments, so please let me know what you would like covered in future videos!

[hounamao]

Finally a video that explains HOW to make the statement and not WHAT the statement is, it was so hard to find yet it is such a basic thing.. Thank you!

[jeffmaxwell]

I'm a high school business teacher, and these videos help me so much when I'm teaching accounting. Thank you, James. These're great.

[libertejayez]

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[ABC-jqve]

I really appreciate the artistry that goes into your videos (the beautiful handwritten visuals, the sound effects, it's amazing). So much dedication to visual/sensory interest. You are a talented man.

[nadiab.]

I came here for info about the cash flow statement and ending up staying longer than I expected because of the charming young man in the video! Oupsie!

[RajatSrivastava]

you need to do some marketing for your videos. Your videos are the best I have found on the youtube and are better that what is given in CFA books. The views need to go up.. Thanks a ton

[aymanzone]

Best Thing Ever: I didn't understand how T-Accounts were used in this example but thanks for video about Debits vs. Credits explaining source vs destination and it becomes very clear. This channel deserves way more subs

[timtam]

OMG! I have to say this video is awesome and so easy to understand since the way you explain this concept makes me feel excited instead of falling asleep like I normally do when listening to my lecturer. Thank you so so much. I feel much more confident about my final exam in the next 3 weeks

[marcuss]

Excellent video! Absolutely loved how you succinctly covered what my professor in university took 3 hours to do (and was still unclear about it, thus I am here)! Also appreciate all the attention to detail in the little things like sound and editing. Thank you!

[christinachampion]

The best Instruction on how to prepare a Cash Flow Statement.
The best I have ever seen. Thanks a million for helping to increase my understanding and eliminate the confusion.
None of my instructors in the university, explained Cash Flow Preparations this well.
You're awesome! James. Thanks!

[elenacapulong]

Thanks very much for this detailed, simplest and easiest explanation of the direct method! You are awesome!

[seisopheapanya]

Thanks a lot, Sir. Appreciated your devotion in helping us catch these things well.

[btodtenhoefer]

Just found these videos, studying to finish my degree, and oh man they are helping so many different concepts click for me. Thank you so much man!

[WhoHasSoul]

Best YouTube channel about accounting. Clear, informative, no water!

[mimichooo]

learning accounting from your videos, watching it one by one. the best! thanks!

[blackm]

10 out of 10 explanation for the cash flow. The best person to listen to explaining such topic.

[minhannah]

Gosh I appreciate you so much for taking times to make these videos.

[kobvpcc]

I’ve seen all of your videos. This is really helpful! Thank you James

[jcc]

Amazing teaching style! Very clear and easy to understand. Makes a dull subject very entertaining!