Good dau ahead. For the cash flow statement, cash flow from operation = net income + depreciation - increase in account receivable (or + decrease in account receivable) - cash payments for inventory ( foundation of finance, Keown, Martin and Petty 7th edition).

However, some cash flow statement are different. Is it mean we have few ways to construct cash flow statement? if yes, which one better? when we have to use above format or following format?

Table 3.4 H.J.Boswell, Inc Statement of Cash Flow for the Year Ending December 31, 2010 S millions) Ending cash balance for 2009 (beginning balance for 2010) Operating Activities Net income $94.5o $204.75 Increase in accounts receivable Increase in inventories No change in other current assets Depreciation expense Increase in accounts payable No change in accrued expenses (22.50O) (148.50) 135.00 4.50 Cash flow from operating activities S 173.25 Investing activities Purchases of plant and equipment (1 75.50) |-Y Cash flow from investing activities (175.50) Financing activities Increase in short-term notes Increase in long-term debt Cash dividends paid to shareholders (9.00) 51.75 SC45.0O) Cash flow from financing activities (2.25 Increase (decrease) in cash during the yeai S (4.50) Ending cash balance for 2010 $90.0o