Cash flow statement is one of the Financial statement after Balance sheet and statement of profit and loss. There are two methods to prepare it one direct and other one is indirect. Like in Direct we prepare it based on top to bottom approach that is we are start with Revenue then finally we will get Net profit after tax then we will get cash flows from operating activities where as in indirect method we will start from net profit taken from SOPL then we will adjust non cash and non operating items then working capital adjustments then we will get cash flows from operating activities. Where as investing and financing activities are same in both direct and indirect methods. Like this i explained with some numerical examples.