Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company. Indirect method: Under this method, the non-cash items are to be adjusted from the Net Income to calculate the net cash provided from operating activities . To explain: The reason why, and how depreciation expenses are reported in statement of cash flows.

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Chapter 12, Problem 16Q

To determine

Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under this method, the non-cash items are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

To explain: The reason why, and how depreciation expenses are reported in statement of cash flows.

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