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If I describe Juan as "possessive" or Anita as "friendly," I am employing the use of
Indirect Method
A cash flow statement preparation approach that adjusts net income for changes in non-cash accounts to calculate operating cash flow.
Operating Activities
Actions and transactions related to the core business operations, such as sales and the production of goods or services.
Net Income
The total earnings of a company after subtracting all expenses, taxes, and costs from the total revenue.
Income Taxes Payable
Income Taxes Payable are the taxes that a company owes to the government, which have been incurred but not yet paid, appearing as a current liability on the balance sheet.
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