Method of Cash Flow Statement - Operating Activity, Investing Activity, and Financial Activity - CA Inter Online Classes The Method of Cash Flow Statement - Cash Flow Statements (CFS) in accordance with CA Inter ICAI Latest Syllabus. Two methods are used to calculate cash flow from operating activities: indirect and direct, which both produce the same result. Direct Method: This method draws data from the income statement using cash receipts and cash disbursements from operating activities. Method of Cash Flow Statement divided into three parts - 1.Operating Activity - Operating Activity - Cash flows from operating activities is a section of a company's cash flow statement that explains the sources and uses of cash from ongoing regular business activities in a given period. This typically includes net income from the income statement , adjustments to net income, and changes in working capital. 2.Investing Activity - Cash flow from investing activities is a sectio
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