How to calculate Cash From Operating Activities (or CFOA) using the direct method. Let me explain to you how to construct a cash flow statement in this short video. This video covers the direct method of cash flow reporting, the companion video covers the indirect method: https://www.youtube.com/watch?v=2tr_6D2SE3w

⏱️TIMESTAMPS⏱️
0:00 How to construct a cash flow statement
0:20 Direct method assignment inputs
1:16 Constructing an income statement
3:44 Cash flow statement direct method
5:06 Cash opening balance vs closing balance

Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!