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The schematic diagram above of a simple self-replicating system demonstrates that
Operating Activities
Activities related to the primary operations of a business, such as sales, supply chain management, and customer service.
Indirect Method
A method used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to convert it from accrual to cash basis.
Net Income
The total profit of a company after subtracting all expenses, taxes, and costs from total revenue.
Statement Of Cash Flows
A financial statement that highlights the major activities that impact cash flows and, hence, affect the overall cash balance.
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