Net cash flow is the difference between income and expenditure.
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)
An individual's net income is used to determine how much income tax is owed. ... cash flows from operating activities ...
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.
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.
Net cash flow is the difference between income and expenditure.
Yes, cash flow can be positive while net income is negative.
Depreciation Expense reduces net income and has no effect on cash flow.
Net cash flow is the difference between income and expenditure.
Net cash flow is the difference between income and expenditure.
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.
Net income would decrease by 1,000,000 - would have no effect on 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)
An individual's net income is used to determine how much income tax is owed. ... cash flows from operating activities ...
net profit
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.
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.