Accountancy, asked by vkanu2016, 1 day ago

answer for net cash flow operating activities

Answers

Answered by snamitatiwari
0

Answer:

Net income is a key metric of profitability and is a major driver of stock prices and bond valuations.

Cash flows from operating activities makes adjustments to net income and excludes non-cash items like depreciation and amortization, which can misrepresent a company's actual financial position.

A company with strong operating cash flows has more cash coming in than going out.

Still, the net income is the bottom line profit that a company makes and even if a company has positive operating cash flows, it can still lose money when all is said and done.

Net Income

Net income is calculated by subtracting the cost of sales, operational expenses, depreciation, interest, amortization, and taxes from total revenue. Also called accounting profit, net income is included in the income statement along with all revenues and expenses.

Below is the income statement for Exxon Mobil Corporation (XOM) from the company's 2017 10-K statement:

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