De kasstroom uit operationele activiteiten voorbereiden

Operating activities in the cash flow statement represent a company's core revenue-generating functions, such as selling goods or providing services.

These activities show whether a company can generate sufficient cash flow to sustain its operations without depending on external financing.

Let us consider Delta Furniture. The company reported a net income of eighty thousand dollars.

Depreciation expense, a non-cash item, amounts to seventy thousand dollars and is added back to the net income.

If Delta Furniture's accounts payable increased by forty thousand dollars, this is added back to net income because it reflects that the company has postponed some cash payments.

Similarly, if accounts receivable increased by twenty-five thousand dollars, that amount is deducted as it reflects cash that has not yet been received.

After all adjustments, the net cash provided by operating activities for Delta Furniture amounts to one hundred and sixty-five thousand dollars.

Understanding the operating activities of the cash flow statement helps stakeholders assess Delta Furniture's financial health and liquidity.