Cash flow table——preparing method of cash flow from operating activities

This paper attempts to introduce cash flows table from operating activities using the direct method.Its information about cash flows from operating activities may be obtained either:(1)from the accounting records of the enterprise;or (2)by adjusting sales,costs of sales and other items on the income statement for:①change in inventories and operating receivables and payables;②depreciation of fixed assets,amortization of intangible assets and other non-cash items;③other items for which the cash effects are investing or financing cash flows.