Understanding Apple Inc's Cash Flow Statement: Indirect Method

The publicly traded company I have chosen is Apple Inc. Direct cash flow identifies cash payments and receipts changes reported within a cash flow statement. An indirect cash flow statement is the net income taken in adding or subtracting changes in noncash transactions in determining an implied cash flow (StudySmarter, 2023). Apple Inc uses an indirect cash flow statement which allows adjustments to be made to the net income. The decrease is also added to the net income in which the cash is received from their customers (StudySmarter, 2023). There is usually a gap between the time of documentation of actual payments and sales, which is the difference between net income statements and cash flow statements. The inflows of inflow of cash are added when decrease in accounts receivables. The cash flow of a company operation of cash inflows and cash outflows like income tax payments, receipts of sales, rent payments, payments that are made to suppliers within production, and payments made to employees and or other expenses that may have been made. Net income carries over from the income statement and is documented on the cash flow statement.