Accounting: What the Numbers Mean
Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 9, Problem 9.4ME
To determine

Concept Introduction:

Cash flow from operating activities These are the cash flows generated from the company's regular business activities by selling its products or from providing services. Cash flows from operating activities exclude long-term expenditures, cash utilized on long- term investments or cash received from sale of long- term assets. There are 2 methods of calculating cash flow from operating expenses i.e. Direct method and Indirect method,

The indirect method explains the change in each non- cash operating item in the balance sheet. Non- cash expenditures such as depreciation and amortization are added back to the Net income. Thereafter, changes in all current assets and liabilities are accounted for.

To calculate:

Net cash provided (used) by operating activities for the period

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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License