Steps - Indirect Method Operating
1) Find Net Income
2) Add Depreciation Expense
3) Add Amortization Expense
4) Make Current Assets Adjustments & Current Liabilities Adjustments a) Increase In => A Current Asset => Subtract from NI b) Decrease In => A Current Asset => Add to NI c) Increase In => A Current Liab. => Add to NI d) Decrease In => A Current Liab. => Subtract from NI
5) Subtract Gains
6) Added Losses
7) Ignore => Cash, S-T Notes Payable (Fin. Act.), & Dividends Payable (Fin. Act.)