Under the indirect method, depreciation, increase in inventories, and "non-operating" losses are added to profit for the year to arrive at net cash from operating activities.

Question

Quizplus · Accepted Answer

Under the indirect method, depreciation is added back to profit for the year, but increase in inventories is subtracted, and "non-operating" losses are not included in the calculation of net cash from operating activities as they are not related to the day-to-day operations of the business.

Under the Indirect Method, Depreciation, Increase in Inventories, and "Non-Operating