Both depreciation and adjustments in non-cash working capital accounts are presented in the statement of cash flows under the section "operating activities".

Question

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Depreciation is added back to net income in the operating activities section because it is a non-cash expense. Adjustments in non-cash working capital accounts (like accounts receivable, inventory, accounts payable) are also made in this section to reflect the cash impact of changes in these accounts.

Both Depreciation and Adjustments in Non-Cash Working Capital Accounts Are