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Indirect Method
A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.
Operating Activities
Activities that relate directly to the primary operations of a company, such as sales and service activities, and are reflected in the company's cash flows.
Net Income
The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset since it was acquired, reflecting its decrease in value over time.
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