To arrive at net cash provided by operating activities it is necessary to report revenues and expenses on a cash basis. This is done by?

To arrive at net cash provided by operating activities, it is necessary to report revenues and expenses on a cash basis. This is done by converting accrual basis accounting figures into cash basis figures through the use of adjustments. Specifically, you will adjust net income by adding back non-cash expenses such as depreciation and amortization, and subtracting gains that are not related to cash transactions. Additionally, changes in working capital accounts such as receivables, payables, and inventories will also be accounted for to reflect how much cash was actually received or paid during the period, rather than what is simply recognized in the income statement.