On a typical cash flow statement, net income is the very first line, under “cash flows from operating activities.” Depreciation and amortization, which is a non-cash expense to account for the declining value of certain assets, like the depreciation of a car, is the next number down.* Still in that same section, there will be a line or a group of lines about net change in accounts receivable (A/R) and accounts payable (A/P) from the previous year. Accounts receivable is when the business is
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