Managerial Accounting, v1.0: "Chapter 12, Section : Appendix: Using the Direct Method to Prepare the Statement of Cash Flows

The same four steps apply to preparing a statement of cash flows using the direct method as with the indirect method. The only difference is how the operating activities section is presented in step one; all other steps are the same as presented in the chapter. Although presentation of the operating activities section using the direct method differs from the indirect method, the end result is exactly the same.