Financial Accounting Online Tutorial 17 | Statement of Cash Flows for Operating Activities | Indirect Method With Solved Example. Here are the steps for calculating the cash flow from operations using the indirect method: Start with net income. Add back non-cash expenses Adjust for gains and losses on sales on assets. Account for changes in all non-cash current assets. Account for changes in all current assets and liabilities except notes payable and dividends payable. For current assets follow rule "Increase-Decrease" and Decrease-Increase" For current Liabilities follow rule: Increase-Increase and Decrease-Decrease" Watch the tutorial to understand more on this rule.
