Take the Net Income from the income statement and add back the depreciation (non cash item), then from the balance sheet add the change in working capital (w/c) which is the difference in current assets (ca) and current liabilities (cl) from the prior year and this should give you the cash flow from operations..Note: You add to the above equation only when ca < cl otherwise you subtract, as this is ca is the cash that was expected to be received from vendors etc and has not yet received.