To calculate the net cash provided by operating activities under the indirect method, profit is adjusted for items which do not affect cash.

Question

Quizplus · Accepted Answer

In the indirect method of calculating cash flow from operating activities, the net income is adjusted for non-cash items (such as depreciation and amortization) and changes in working capital items (like accounts receivable, inventory, and accounts payable) to arrive at the net cash provided by operating activities.

To Calculate the Net Cash Provided by Operating Activities Under