[Verse 1] Picture two accountants with their spreadsheets wide One tracks every penny as it flows inside Direct method lists each payment, every sale Cash receipts from customers tell the tale Operating cash flow mapped from start to end Every transaction crystal clear to comprehend [Chorus] Direct shows the rivers, indirect shows the bridge From net income climbing to that final ridge Add back depreciation, subtract the gains Adjust for working capital's shifting reins Most companies choose indirect's winding road 'Cause the data's readily available in accounting code [Verse 2] Indirect begins with profit on the page Then transforms it like an actor on a stage Non-cash expenses get added to the sum Depreciation, amortization - here they come Changes in receivables shift the final score Inventory movements matter even more [Chorus] Direct shows the rivers, indirect shows the bridge From net income climbing to that final ridge Add back depreciation, subtract the gains Adjust for working capital's shifting reins Most companies choose indirect's winding road 'Cause the data's readily available in accounting code [Bridge] Direct method's pure but takes more time to trace Every cash transaction to its rightful place Indirect's efficient, uses what you've got Income statement items, ready or not FASB allows both methods to be used But ninety-nine percent have indirect shoes [Verse 3] When accounts payable rises, cash stays put When receivables climb, less cash underfoot Reconciling differences between two views Accrual accounting versus cash flow clues Both arrive at identical final amounts Just different pathways to what really counts [Chorus] Direct shows the rivers, indirect shows the bridge From net income climbing to that final ridge Add back depreciation, subtract the gains Adjust for working capital's shifting reins Most companies choose indirect's winding road 'Cause the data's readily available in accounting code [Outro] Two methods, one answer, cash flow's true face Choose your pathway through the accounting space
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