Calculating Cash for the Statement of Cash Flows Using Bauman's Cash Flow Method

Most if not all accounting texts teach the subject of cash flow analysis from a “formulaic approach” – meaning, “Take this number and either add or subtract other numbers.” This approach forces those who use manual methods of calculations to remember many different “formulae” to correctly construct the Statement of Cash Flows using the two successive period-ending balance sheets and the linking income statement. For example, to compute the actual cash received from customers, the textbook v...