Cash flows from operating activities

Cash flows from operating activities,

Definition of Cash flows from operating activities:

  1. Section of a cash flow statement that shows cash receipts and payments resulting from transactions associated with the determination of net income of a firm. Also called cash provided by operating activities. Formula: Net income + Depreciation and amortization + Net changes in accounts receivable + Changes in accounts payable + Changes in inventories + Changes in other operating activities.

Meaning of Cash flows from operating activities & Cash flows from operating activities Definition