The Advantages of Preparing a Cash Flow Statement Using the Direct Method. The statement of cash flows is one of the financial statements investors rely on to gauge a company's financial strength.

The statement contains sections for operating, investing and financing activities. The direct method pertains to the operating activities section and uses actual cash flow information.

The balance sheet, income statement, and cash flow statement: these offer an inside look at a company. Browse Investopedia’s expert-written library to learn more.

The Discounted Cash Flow (DCF) method stands as a crucial financial analysis approach employed to assess the worth of an investment or a business by considering its anticipated future cash flows ...