Why do they add back losses and subtract gains from investing or financing activities?
Answer
The gains and losses from the disposal of fixed assets appear on the income statement and the cash flow will appear as an investing activity
Tags
#cashflow-statement #indirect-method
Question
Why do they add back losses and subtract gains from investing or financing activities?
Answer
?
Tags
#cashflow-statement #indirect-method
Question
Why do they add back losses and subtract gains from investing or financing activities?
Answer
The gains and losses from the disposal of fixed assets appear on the income statement and the cash flow will appear as an investing activity
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Subject 2. Preparing the Cash Flow Statement r allocation of original purchase cost to this period. As a result, expenses increase without a corresponding cash outlay. Since depreciation does not affect cash flow, it should be added back to net income to compute net CFO.
3. <span>Add back losses and subtract gains from investing or financing activities. Examples include gains/losses from sale of property, plants and equipment (investing activity) or gains/losses from early retirement of debt (financing activity). Why? Disposal of fixed
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