The statement of cash flows can be prepared using two different methods-the direct method and the indirect method. Although the indirect method is easier to use, the direct method is considered to be a more favorable method of presenting the data.

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The statement of cash flows can be prepared using two different methods-the direct method and the indirect method. Although the indirect method may be easier to use because it starts with net income and adjusts for non-cash transactions, the direct method is considered to be more favorable because it shows the actual cash inflows and outflows for each category. However, both methods are acceptable and have their own advantages and disadvantages.

The Statement of Cash Flows Can Be Prepared Using Two