👤

Answer :

Answer:

Adjustments of Non-Cash items and Changes in Working Capital items

Explanation:

Cashflow Statement shows the movement in Cash and Cash equivalent balance during the reporting period. Net Income is not a Cashflow item, however this can be reconciled to Cashflow amount by adjusting it by Non-Cash items and Changes in Working Capital items. This is done when the Cashflow statement is prepared using the Indirect Method.