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The reconciliation of net income to operating cash flows is killing me!!!!!! I know that under the indirect method, net income is adjusted to derive net cash flow from operating activities by:
1) Adding back non-cash charges (reductions) included in deriving net income; and
2) Subtracting out non-cash credits (increases) included in deriving net income…
BUT…the whole process confuses the crap out of me, and I keep getting problems wrong! Have others had trouble with this, and how can I best study the indirect method of presenting CFs from operating activities?
Thanks!!!!
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