Statement of Cash Flow (Indirect Method)
Could someone please explain the adjustment section conceptually and how one can tell if the adjusted amount should be removed (negative #) or added (positive #)? Thanks! ;
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Cash flow from operating activities | ||
NI | ;95000 | |
Adjustments: | ; | |
Gain from HFT | -2500 | |
Inc in AR | -13000 | |
Dec in inventory | 12000 | |
Dec in prepaid expenses | 5000 | |
Goodwill impairment | 14000 | |
Depreciation | 30000 | |
Inc in AP | -10000 | |
Inc in Accrued Liability ; | 7000 | |
IT exp | 20000 | |
Interest exp | 10000 | |
Cash generated from OA | 167500 | |
interest paid | -8000 | |
income tax paid | -22000 | |
Net cash from OA | 137500 |