Concept explainers
Concept Introduction:
Cash flow from operating activities These are the
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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Accounting: What the Numbers Mean
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