On the statement of cash flows of a healthy company,Net Cash Provided by Operating Activities generally exceeds net income because depreciation expense is added back to net income.

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Depreciation expense is a non-cash expense that is subtracted from net income to arrive at operating cash flows. Therefore, adding back depreciation to net income increases the amount of net cash provided by operating activities. A healthy company usually has a high level of operating cash flows relative to net income, as this indicates strong cash generation from core business operations.

On the Statement of Cash Flows of a Healthy Company,Net