Financial Accounting Online Tutorial 17 | Statement of Cash Flows for Operating Activities | Indirect Method With Solved Example. <br />Here are the steps for calculating the cash flow from operations using the indirect method: <br />Start with net income. <br />Add back non-cash expenses <br />Adjust for gains and losses on sales on assets. <br />Account for changes in all non-cash current assets. <br />Account for changes in all current assets and liabilities except notes payable and dividends payable. <br />For current assets follow rule "Increase-Decrease" and Decrease-Increase" <br />For current Liabilities follow rule: Increase-Increase and Decrease-Decrease" <br />Watch the tutorial to understand more on this rule.
