Cash Flows From Operating Activities

Sunday, March 25, 2012

Section of a cash flow statement that shows cash receipts and payments resulting from transactions associated with the determination of net income of a firm. Also called cash provided by operating activities. 


Formula: Net income + Depreciation and amortization + Net changes in accounts receivable + Changes in accounts payable + Changes in inventories + Changes in other operating activities.


Photo: stocks-for-beginners.com
Source: dictionary.com

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