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CFA Level 1
Financial Reporting and Analysis

Adjusting Net Income for Non-Cash Items in Cash Flow Statement

Very Hard Financial Statements Cash Flow Statement

During the preparation of the cash flow statement u\sing the indirect method, XYZ Corporation needs to adjust its net income for non-cash items and changes in working capital accounts. Among the following adjustments, which one accurately represents a typical non-cash item that would be added back to net income in the operating activities section?

Hint

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