Part III: Prepare a statement of cash flows using the indirect method 6. Put the following steps to prepare a statement of cash flows using the indirect method in the correct order: La. Use the balance sheet to determine the increase or decrease in cash during the period. b. Use the income statement and balance sheet date to prepare the statement of cash flows. Lay out the template. H. From the income statement, take Net Income; Depreciation, depletion, and amortization expense; and any Gains or Losses on the sale of long-term assets