Financial Accounting Online Tutorial 17 | Statement Of Cash Flows For Operating Activities

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Financial Accounting Online Tutorial 17 | Statement of Cash Flows for Operating Activities | Indirect Method With Solved Example.
Here are the steps for calculating the cash flow from operations using the indirect method:
Start with net income.
Add back non-cash expenses
Adjust for gains and losses on sales on assets.
Account for changes in all non-cash current assets.
Account for changes in all current assets and liabilities except notes payable and dividends payable.
For current assets follow rule "Increase-Decrease" and Decrease-Increase"
For current Liabilities follow rule: Increase-Increase and Decrease-Decrease"
Watch the tutorial to understand more on this rule.