Cash flow from operations (CFO),”NI + Depreciation + Decrease in Op. Asset Accounts – Increase in Op. Asset Accounts + Increase in Op. Liability Accounts (other than notes payable) – Decrease in Op. Liability Accounts.*Hint: you add the decrease in an operating asset account such as accounts receivable because if the AR decreases, that means customers have PAID for products (in other words
cash is coming IN).”