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It depends on the type of organisation let me illustrate with an example hospitals that are runned by state government or any NGO or trust does not profit motive hence they will prepare Income and expenditure A/C and hospitals those are opened by private companies or public companies which have profit motive like Apollo, llelavati hospital etc will prepare profit and loss A/C bcoz thr motive is to earn profit and maximize the wealth of shareholders 

The two methods for calculating cash flow from operating activities are as follows:

1) Direct Method: This method considers all major heads of cash payment and receipts for arriving at net cash position from operating,investing and financing activities.

2) Indirect Method: This method considers the net income as reporteed in the income statement of the company as base and makes adjustments for cash and non-cash items to arrive at cash position.