Accounting Question
As per indirect method of preparation of cash flow statement, when we calculate the cash flow from operating activities . we have to made some adjustments in the net income or net loss reported by the entity like we have to add or deduct depreciation and loss or profit on sale of assets. and also have to consider change in current assets and liabilities.
The most important thing is that The cash flow statement or Balance sheet or Statement of Profit & loss of a company which have subsidiary and associate company must consolidate with subsidiary financial statements.
Case : In this case United Continental Holding , Inc. which is the parent company of United Airlines report net loss of $ 723 millions from operations and cash flow from operating activities of $ 935 millions.
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