Why do we adjust net income for changes in working capital


Why is depreciation added back to net income to arrive at cash flow? . Why do we adjust net income for changes in working capital accounts? How does the statement of cash flows relate to the balance sheet ? How does the statement of cash flows relate to the income statement?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Why do we adjust net income for changes in working capital
Reference No:- TGS01691622

Expected delivery within 24 Hours