1. Cash flow from operating Activities
Cash flow statement
Direct Method

2. 1- Cash collection from customers
A/R ***** Cash ***** A/R**** Revenue**** Cash collection from customers= Revenue(sales) (Cr)
Decrease in A/R (Cr) +
Increase in AR (Cr) -

3. 2- Cash Payment to suppliers
Inventory ***** A/P ***** C G Sold ***** Cash ***** Inventory ***** A/P ***** Cash for Suppliers = Cost of Good sold (Dr)
Increase In Inventory (Dr)
Decrease in A/P (Dr) +
Decrease in Inventory (Cr)
Increase in A/p (Cr) -

4. 3- Cash Payment for Operating Expenses
P.P exp *****
Accu exp *****
Op. exp *****
Cash *****
P.P exp *****
Cash Payment for operating expenses = Operating Expenses (Dr)
Increase in Prepaid Exp.(Dr)
Decrease in Accrued Exp.(Dr) +
Decrease in Prepaid Exp.(Dr)
Increase in Accrued Exp.(Dr) -