Question

Prepare a format of cash flow from operating activities under direct method.

Answer 1

Format of cash flow from operating activities under direct method is as follows:

$\begin{array}{cc}\text{Direct Method}& \\ \text{Cash Flow from Operating Activities}& \\ \text{Cash Receipts from Customers}& -\\ \text{Cash Paid to Suppliers and Employers}& -\\ \text{Cash Generated from Operations}& -\\ \text{Income Tax Paid}& -\\ \text{Cash Flow before Extraordinary Items}& -\\ \text{(+/-) Extraordinary items}& -\\ \text{Net Cash from Operating Activities}& -\end{array}$