The basis of Cash Flow Statement is__________________
accountancy
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The main components of the cash flow statement are cash from operating activities, cash from investing activities, and cash from financing activities.
What does the cash flow statement reconcile?
- Therefore, companies must reconcile the cash flow statement to the income statement through an adjustment and reconciliation process. Under the direct method, reconciliation occurs when a company shows how net income from its income statement translates into the net cash it generated during the same accounting period.
What is cash flow formula?
- Cash flow formula:Free Cash Flow = Net income + Depreciation/Amortization – Change in Working Capital – Capital Expenditure. Operating Cash Flow = Operating Income + Depreciation – Taxes + Change in Working Capital. Cash Flow Forecast = Beginning Cash + Projected Inflows – Projected Outflows = Ending Cash.
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