Which method of reporting cash flows from operations does the company use?

The company uses the indirect method of reporting cash flows from operations. This method adjusts net income for non-cash items, such as depreciation and amortization expenses, that are reported on the income statement but do not involve actual cash outflows. The adjusted net income is then used to calculate changes in working capital accounts like receivables, payables and inventory. Finally, these changes are added or subtracted from the adjusted net income figure to arrive at the total operating cash flow.

The indirect method generally provides a more complete picture of a company’s operational activities since it eliminates any discrepancies between financial accounting practices and actual cash movements. It also helps investors better identify any potential sources of financing or profits that may be understated on the balance sheet due to differences in accounting standards between different countries or industries.