Concept explainers
(a)
Introduction:
To prepare:
The cash flow from operating activities section of cash flow statement using indirect method.
(b)
Introduction:
Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities those are production, sales and payments collected. It includes operating income and operating expenses for the year.
To identify:
The cause of difference between net income of the company and its net cash flow from operating activity.
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