02 July 2012
Cash flow from operations is the cash version of net income. Net income figures include non cash costs such as depreciation and excludes other cash expenditures, such as purchases of plants or equipment.
Cash flow adjusts the income figures to a cash basis. Cash flow from operations is cash flow after adjusting for operating differences such as depreciation, but before adjusting for investments (such as purchases of plants or equipment) or financing. This information is taken directly from the cash-flow statement of the company's most-recent annual report.
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