Adjust net profit to cash flow from operating activities by indirect method.

1. Deduct the profit and loss from non-operating activities (profit and loss from financing and investment activities): the loss from disposal of fixed assets, intangible assets and other long-term assets; Scrapping loss of fixed assets; Financial expenses; Investment loss (minus income). Net profit MINUS "non-operating profit and loss" results in "net profit and loss from operating activities".

2. Add unpaid operating assets: provision for impairment; Depreciation of fixed assets; Amortization of intangible assets; Amortization of long-term deferred expenses; Reduce prepaid expenses; Accrued expenses increase.

These six expenses have been deducted when calculating profits, but no cash has been paid in this period. Add them back and get "cash generated from business activities".

3. Increase the decrease of non-cash current assets: decrease (decrease) of inventory; The decrease of operating accounts receivable includes the decrease (decrease) of bills receivable, accounts receivable, prepayments and other receivables.

4. Increase business items payable, including increase (decrease) of notes payable, increase (decrease) of accounts payable, increase (decrease) of other payables, increase (decrease) of wages payable, increase (decrease) of welfare expenses payable, increase (decrease) of taxes payable and deferred tax deduction (this item is special in nature and can also be classified as non-operating profit and loss).

Extended data

Flow analysis

1, analysis of cash flow manipulation in operating activities.

Enterprises manipulate the operating cash flow statement mainly through the following channels:

(1) tampering with the nature of cash flow, disguising cash inflow from financing activities as cash inflow from operating activities, putting operating expenses into investment activities, disguising cash inflow from investment activities as cash inflow from operating activities, and so on;

(2) As an expedient measure, in order to avoid the deterioration of the net operating cash flow in the annual accounting statements, the enterprise can let the parent company or major shareholder repay a large amount of accounts receivable at the end of the period or even pay the advance payment first, and return the funds to the parent company or major shareholder in various forms in the next period;

(3) Discounting bills receivable is essentially a form of financing for enterprises, which can not improve the profitability and income quality of enterprises;

(4) Use accounts payable to improve accounts payable when there is little space for accounts receivable.

2. Adequacy analysis of cash flow from operating activities.

Baidu Encyclopedia-Cash Flow from Operating Activities