Monday, January 26, 2009

Net Income Cash Flow Adjustment

Follow these steps to adjust net income for use in a Cash Flow Statement

Net Income Adjustments
  1. Adjust for Non-Cash Changes in Current Accounts
  2. Adjust for Non-Cash Changes in Non-Current Accounts
  • Add Depreciation & Amortization
  • Add Loss on Sale of Assets
  • Subtract Gain on Sales of Assets

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