Thursday, 15 December 2016

Cash Flows from Operating Activities

This is how much money the company received from its actual business operations.

This does not include cash received from other sources, such as investments. 

To calculate the cash flow from operating activities, the company starts with net income (from the income statement), then adds back in any 

  • depreciation expenses, 
  • deferred taxes, 
  • accounts payable and accounts receivables, and 
  • one-time charges.

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