How do you calculate net cash by operating activities?

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1279705

2026-04-09 08:40

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Net cash from operating activities is calculated using the cash flow statement, where you start with net income and adjust for non-cash items like depreciation and changes in working capital accounts (such as accounts receivable, inventory, and Accounts Payable). You can use either the direct method, which lists cash receipts and payments, or the indirect method, which adjusts net income for these non-cash items. The result gives you the net cash generated or used by operating activities during a specific period.

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