Cash Flows from (Used for) Operating Activities-Direct Method The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: b. What does the direct method show about a company's cash flows from operating activities that is not shown using the indirect method? With the , the cash received less the cash paid is the net cash flows from operating activities. Individual cash receipts and payments are reported in the Cash Flows from (used for) Operating Activities section. The adjusts accrual basis net income for revenues and expenses that do not involve the receipt or payment of cash to arrive at net cash flows from operating activities