Download and customize this and hundreds of business presentation templates for free
The adjustment of net income for non-cash expenses like depreciation and changes in working capital can reveal the cash flow from operating activities by providing a more accurate picture of the cash generated or consumed by the company's core business operations. Depreciation is a non-cash expense that reduces net income but does not impact cash flow. Therefore, adding it back to net income can give a clearer view of the cash flow. Similarly, changes in working capital accounts (accounts receivable, inventory, and accounts payable) also affect net income but not cash flow. Adjusting for these changes can help reveal the actual cash flow from operating activities.
Asked on the following presentation:
How to clearly show the performance of your organization with numbers? The three financial statements model – which includes the balance sheet, the in...
Microsoft Powerpoint
Microsoft Powerpoint
Microsoft Powerpoint
Microsoft Powerpoint
Voila! You can now download this presentation
Download
Question was asked on:
This statement begins by adjusting the net income from the Income Statement for non-cash expenses like depreciation and changes in working capital, such as accounts receivable, inventory, and accounts payable. This adjustment reveals the cash flow from operating activities, which is the amount of cash generated or consumed by the company's core business operations.
Questions and answers
Ask another question
Want to save hours on the design and layout of your next quarterly report? Use this presentation template to translate important information into a digestible report to be distributed between teams and stakeholders. Quarterly reports incorporate pages and pages of documents, so save hours of work with this completely customizable presentation.
Customize our new Sales Review presentation to motivate your team. Use our Sales Review presentation to summarize findings from the year’s performance and lay out the blueprint for a more productive and fruitful year ahead.
Need to showcase the year's achievements? Our Annual Report collection provides customizable slides that can be used for any business need. It includes slides for growth and market share, product portfolio, revenue breakdown, sales summary, income versus expenses, sustainability highlights, and many more.
Organize income, cash flow, and balance sheets with out all-in-one Financial Statement Template. It offers monthly, quarterly, and yearly data visualizations with a dashboard to assess the company's financial health. It also generates a PDF ready for export, including all three statements' annual outcomes.