When deriving the Statement of Cash Flows, the net cash flow from operations equals Net income + depreciation expense + increase in accounts receivable + increase in inventory - increase in accounts payable Net income + depreciation expense - increase in accounts receivable - increase in inventory + increase in accounts payable Net sales + depreciation expense + increase in accounts receivable + increase in inventory - increase in accounts payable Net income - depreciation expense + increase in accounts receivable + increase in inventory - increase in accounts payable Net sales + depreciation expense - increase in accounts receivable - increase in inventory + increase in accounts payable