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Describe the steps necessary to make changes in the statement of cash flows report layouts in...

Describe the steps necessary to make changes in the statement of cash flows report layouts in order to properly reflect the adjustments needed to reconcile net income with cash provided by operations

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Answer #1
Cash flows from operating activities:
Net Income
Adjustments to reconcile net loss to net cash flow from operating activities:
Depreciation
Changes in current operating assets and liabilities:
(Increase)/Decrease in accounts receivable
(Increase)/ Decrease in inventory
Increase /(Decrease) in accounts payable
Increase /(Decrease) in salaries payable

Cash flow provided by (used in) operating activities

These are some example of adjusted we have to do adjustments needed to reconcile net income with cash provided by operations, Firstly we take net income/Net loss then we adjust depreciation or amortization expenses, second, we also consider investing or financing income/loss which has to less or adds then we adjust working capital adjustment accordingly their increase or decrease.
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