Exam 1 review · Lesson 2 of 45
The Income Statement & Net Cash Flow
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Exam 1 review · Lesson 2 of 45 · 13 min
The Income Statement & Net Cash Flow
Walk the income statement down from sales to net income, climb back up to find interest or depreciation, tie it to retained earnings, and turn net income into net cash flow.
Inside this lesson
- Why this matters
- The core idea
- The formula
- Worked example 1: walking down to net cash flow
- Worked example 2: climbing up, then dividends
- Your turn
- Calculator steps
- Common mistakes
- Quick check
- Key takeaways
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