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Unformatted text preview: Indirect method depreciation expense and losses added back b/c WERE SUBTRACTED IN DERIVING NET INCOME and DO NOT REQUIRE OUTFLOW OF CASH Purpose of adjusting net income for changes to a certain balance sheet CONVERT ITEMS INCLUDED IN NET INCOME TO CASH US GAAP allows significant non cash investing and financing reported IN THE NOTES TO FINANCIAL STATEMENTS and ON THE FACE OF THE STATEMENT OF CASH FLOWS A DECREASE in accounts receivable is added to net income in the OPERATING activities section of the statement of cash flows An INCREASE in accrued liabilities, such as interest payable, will be added to net income when determining net cash flow from operating activities...
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This note was uploaded on 11/23/2011 for the course ACCT 2103 taught by Professor Burnett during the Fall '08 term at Oklahoma State.
- Fall '08
- Financial Accounting