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Indirect Method
A method often used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.
Net Income
The total profit of a company after all expenses and taxes have been deducted from revenue, also known as net earnings or net profit.
Noncash Expense
Expenses that do not directly result in a physical outflow of cash but are recorded in the accounting records, such as depreciation.
Depreciation
The methodical distribution of the expense of a physical asset across its lifespan.
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