Tamarack Outfitters 2025 (CAD thousands): net income 480; depreciation 180; no disposals. Balance sheet changes during the year: accounts receivable 480 → 600; inventory 560 → 720; prepaids 40 → 60; accounts payable 400 → 480; accrued liabilities 100 → 120. Build the indirect operating section, entering each adjustment with the sign it carries on the statement (a subtraction is negative).
Tamarack Outfitters 2025 (CAD thousands): net income 480; depreciation 180; no disposals. Balance sheet changes during the year: accounts receivable 480 → 600; inventory 560 → 720; prepaids 40 → 60; accounts payable 400 → 480; accrued liabilities 100 → 120. Build the indirect operating section, entering each adjustment with the sign it carries on the statement (a subtraction is negative).
Answer
Net income → 480 · Depreciation → 180 · Change in receivables → -120 · Change in inventory → -160 · Change in prepaids → -20 · Change in payables → 80 · Change in accrued liabilities → 20 · Cash from operating activities → 460
Cells - Net income · ±0 - Depreciation · ±0 - Change in receivables · ±0 - Change in inventory · ±0 - Change in prepaids · ±0 - Change in payables · ±0 - Change in accrued liabilities · ±0 - Cash from operating activities · ±0 Add back the 180 of depreciation (no cash moved). Current assets rose (receivables +120, inventory +160, prepaids +20), so subtract each; current liabilities rose (payables +80, accrued +20), so add each. 480 + 180 − 120 − 160 − 20 + 80 + 20 = 460. Excel: =SUM(B2:B8) once each line carries its sign.
Lyryx IFA Vol 2 §20.2.2; Lyryx Intro FA §11.2; Heisinger & Hoyle §12.4