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Net Income is equal to the income that a firm has after subtracting costs and expenses from the total revenue.
It can refer to the total of all the flows involved or to only a subset of those flows.
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∙ 14y ago
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What is the net cash flow?
Net cash flow is the difference between income and expenditure.
Is net income a debit or credit in the statement of cash flow?
In a statement of cash flow a net income is a credit, which should always be the same amout of cash in your balance sheet. (nice check)
How does income taxes affect net cash flow?
An individual's net income is used to determine how much income tax is owed. ... cash flows from operating activities ...
Is amortization of discount on investment in bonds added or subtracted in converting net income to the net cash flow?
Amortization of discount is added back to net income as there is no actual cash outflow due to amortization and that's why it is added back to cash flow from operating activities.
Depreciation affect cash flow?
There is no affect of depreciation on cash flow that's why in indirect method of cash flow net income is adjusted for depreciation to calculate cash flow from operating activities.
What is the net cash flow?
Net cash flow is the difference between income and expenditure.
Can cash flow from operation be positive if net income is negative?
Yes, cash flow can be positive while net income is negative.
What effect does depreciation expense have on net income and cash flow?
Depreciation Expense reduces net income and has no effect on cash flow.
What is net flow?
Net cash flow is the difference between income and expenditure.
What is the net flow?
Net cash flow is the difference between income and expenditure.
Why is that net income does not equal cash provided by operations?
Net cash flow and net profit is not same due to inclusion of non cash items in net income that's why net income is adjusted for non cash items while preparing cash flow from operating activities.
What would happen to net income and cash flow if depreciation was increased by 1 million?
Net income would decrease by 1,000,000 - would have no effect on cash flow.
Is net income a debit or credit in the statement of cash flow?
In a statement of cash flow a net income is a credit, which should always be the same amout of cash in your balance sheet. (nice check)
How does income taxes affect net cash flow?
An individual's net income is used to determine how much income tax is owed. ... cash flows from operating activities ...
Why I type of adjustments have a largest impact on net income in cash flow?
net profit
EXPLAIN HOW DEPRECIATION GENERATES CASH FLOW FOR A COMPANY.?
I assume what you are referring to is the fact that if your are using the indirect approach to complete a cash flow statement, you add back depreciation. This step makes it look like depreciation is generating cash flow for the company. The reason for adding depreciation is that when we are preparing our cash flow statement, we are reconciling net income to account for things that are not reflected or things that do not affect cash flows. If we simplify it, we can say that net income equals ( Sales - Expenses ). Depreciation is an expense that decreases our net income, but it is simply an accounting value to match expenses with revenues produced, and does not affect cash. So, since we deducted depreciation to get to net income we need to add it back when we do our cash flow statement to reconcile net income with our cash flow.
Is amortization of discount on investment in bonds added or subtracted in converting net income to the net cash flow?
Amortization of discount is added back to net income as there is no actual cash outflow due to amortization and that's why it is added back to cash flow from operating activities.
