ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Net income is carried over from the income statement and is the first item of the cash flow statement. Net cash flow from operating activities is calculated as the sum of net income, adjustments for non-cash expenses, and changes in working capital.

Detailed explanation-2: -Salaries and wages are presented within the cash payments section of the operating cash flows section of a cash flow statement.

Detailed explanation-3: -A cash flow statement provides data regarding all cash inflows that a company receives from its ongoing operations and external investment sources. The cash flow statement includes cash made by the business through operations, investment, and financing-the sum of which is called net cash flow.

Detailed explanation-4: -The cash flow statement is linked to the income statement by net profit or net burn, which is the first line item of the cash flow statement. The profit or loss on the income statement is then used to calculate cash flow from operations.