Preparing a Cash Flow Statement: The Indirect Method

This video tutorial from Let'sTute Accountancy covers the indirect method of preparing a cash flow statement. It explains the adjustments needed for non-cash and non-operating items, and how changes in working capital affect cash flows. The tutorial provides examples to illustrate these concepts and concludes with a practical example of preparing a cash flow statement using the indirect method.

How do non-cash items affect the cash flow statement?

What steps are involved in adjusting net profit for non-cash items?

Summarize the process of deriving net cash flow from operating activities.

What is the final result of the cash flow statement derived from the indirect method?