Practicing Success
Cash from operation is equal to : |
Net Profit + Increase in Current Assets Net Profit - Decrease in Current Liabilities Operating Profit + Adjustment of Current Assets and Current Liabilities None of the above |
Net Profit - Decrease in Current Liabilities |
If the balance of a current liability increases, or the balance of a current asset decreases cash flow from operations will increase. If the balance of a liability decreases and the balance of current assets increases, cash flow from operations will decrease. |